Cities Index.
Development Agreement.pdf

Chula Vista City Council
December 3, 2024

Document
Development Agreement.pdf
Meeting
December 3, 2024
Body
Chula Vista City Council
Original file
37.8 MB
Text extracted from the city's file for reading and search. Open the original on pub-chulavista.escribemeetings.com. That file is the official record.

Attachment9
2091/025068-0045
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RECORDINGREQUESTEDBY:

City Clerk
WHEN RECORDEDMAIL TO:

CITY OFCHULA VISTA
276FourthAvenue
ChulaVista, CA 91910
AboveSpacefor Recorder’s Use)
APNs ___________ and ____________

DEVELOPMENTAGREEMENTFOROTAY

RANCH TOWN CENTERMIXED- USEPROJECT
THIS DEVELOPMENT AGREEMENT (“Agreement”) is madeandenteredinto by and betweentheCITY OFCHULA VISTA, acharteredCaliforniamunicipalcorporation (“City”) and GeneralGrowth Properties (GGP) Otay Ranch L.P. (“Owner”). City and Owner whenever referencedhereincollectivelyshallbereferredto as “Parties” andwheneverreferencedhereinafter individually maybereferredto as “Party.” ThePartiesagreeasfollows:

RECITALS
A. City’s Authority to Enterinto DevelopmentAgreement. City is authorizedunder CaliforniaGovernmentCodesections65864etseq. to enterinto bindingdevelopmentagreements with personshavinglegalor equitableinterestsin realpropertyfor thepurposesof, amongother things, (i) providingcertaintyasto permittedlandusesin thedevelopmentof suchproperty, and ii) ensuringthesuccessfulcompletionof theFreewayCommercialFC-1 SouthPortion, ownedby GGPOtayRanchL.P., a 78.29-acreportionof the120-acreFreewayCommercialFC-1 Sectional PlanningAreaPlan.

B. TheProperty: Owner’s Interest. Ownerhasa legalor equitableinterestor bothin the approximately16.59-acre site more particularly describedin Exhibit A and depictedin Exhibit B attachedhereto (the “Property”). The Propertyis the subjectof this Agreementandis locatedwithin FreewayCommercialFC-1, South Portion of the FreewayCommercialFC-1 SectionalPlanningAreaPlan. Ownerintendsthatits successorsin interestholdingfeetitle to the Propertybenefitfrom andbeboundby thisAgreement, asmoreparticularlydescribedherein. The owner intendsto develop, improve, build on, sell or leasethe Propertyor portionsthereofto variousBuilders (ashereinafterdefined) whomayacquireportionsof thePropertyandthebenefits andburdensunderthis Agreement.

C. The Project. The Propertyis being plannedas Mixed-Use developmentthat is intendedto provide, overoneor morephases, upto 840residentialdwellingunitsatfull build out, asshownonExhibit B, while preservingexistingretailspace, includingthedemolitionof existing retail spaceandrebuildingof 37,200squarefeet of retail (the “Project”). The Projectwill also include various passiveand active recreationalopen spaceareasdistributed throughoutthe residentialareasto provide recreationalopportunitieswithin walking distanceof the proposed residentialuses. TheProjectis locatednorthof Birch Road, eastof StateRoute125, andwestof EastlakeParkway.

D. ProjectApprovals. On _______________ 2024, theCity approvedaGeneralPlan Amendment (by Resolution No. 2024-0XX), an amendmentto the Otay Ranch General DevelopmentPlan, an amendmentto FreewayCommercial FC-1 Sectional Planning Area SPA”) Plan (by Resolution No. 2024- 0XX), a DevelopmentAgreement (by Ordinance No. 2024-XXX, Tentative Map No. 22-0002 (by ResolutionNo. 2024-0XX), a Rezone (by OrdinanceNo 2024-XXX), andotherrelatedentitlementsfor theProject.

E. Compliancewith CEQA. In connectionwith theCity’sprior approvalof theSPA Plan, the City certified a Final EnvironmentalImpact Report for the Otay Ranch Freeway CommercialFC-1 SectionalPlanningAreaPlanPlanningArea12 (“FEIR”). Prior to theCity’s adoptionof the Existing ProjectApprovals (as hereinafterdefined) describedabove, the City CouncilindependentlyreviewedandapprovedaFourthAddendumto theFEIR, whichconcluded theProjectwouldnotresultin anynewsignificantenvironmentaleffectsbeyondthosepreviously analyzedundertheFEIR, all in accordancewith the provisionsof theCaliforniaEnvironmental Quality Act, CaliforniaPublicResourcesCodesection21000, et seq. (“CEQA”).

F. City andOwnerAcknowledge. City andOwneracknowledgethisAgreementwill providethefollowing benefits:

1. Allow for the developmentof the Projectin phases, asfurther described herein.

2. CommunityPurposeFacility (“CPF”) alternativecomplianceobligationsin a futureCPFAgreementconsistentwith theProject’s densityrange, assetforth in Section4.7 of this Agreement.

3. Providefor timing of parkacreageandin lieu parkfeeson a sliding scale consistentwith theProject’s densityrange, assetforth in Section4.8 of this Agreement.

4. Providefor apublicbenefitcontributionto bepaidto theCity by Ownerfor eachresidentialdwelling unit developed, assetforth in Section4.13of this Agreement.

5. ProvideOwnerwith assurancesregardingthe Existing ProjectApprovals and regulationsthat will be applicableto the developmentof the Project consistentwith the existinglanduseregulationsandtheExistingProjectApprovals; and G. ThePartiesagreethatthecovenants, promisesandothermaterialrequirementsof this Agreementconstitute adequateconsiderationthat is fair, just, mutual, equitable and reasonable.
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H. PlanningCommission. On ________, 2024, City’s PlanningCommissionhelda duly noticedpublichearingonthisAgreementandattheconclusionof thehearingrecommended of theProjectandthis agreement.

I. City CouncilApproval. On _________, 2024theCity Councilheldaduly noticed public hearing on this Agreement, at the conclusionof which the Council introducedand conductedthefirst readingof theordinance _____________ theAgreement, andsubsequently, on _____________, adoptedOrdinanceNo. XXX _________ theAgreement. Aspartof its initial hearing, the City Council consideredand approvedthe environmentaldocumentationfor this Agreementasbeingin compliancewith theCaliforniaEnvironmentalQuality Act.

NOW, THEREFORE, for goodandvaluableconsideration, the receiptandadequacyof which areherebyacknowledged, City andOwnerherebyagreeasfollows:

ARTICLE 1

DEFINITIONS
In this Agreement, unlessthecontextotherwiserequires, thefollowing termsshallmean:

ApplicableLaw” meanslaws, rules, regulationsandofficial policiesof City (including GeneralPlan policies, Administrative codes, ordinances, resolutionsand other local laws, regulations, andpoliciesof City) in forceandeffecton theEffectiveDate.

City Council” meanstheChulaVistaCity Council.

City Laws” meansanynewrules, laws, regulations, policies, ordinances, resolutionsand standardsadoptedby theCity aftertheEffectiveDateof this Agreementthatcanbeappliedto decisionsonFutureProjectApprovalsor amendmentsto ExistingProjectApprovalsasprovided for herein.

Builder” meanstheentity, personor personsto whomOwnerwill sell, leaseor convey or hassold, leasedor conveyedthePropertyor portionsthereof, for purposesof its improvement for residential, commercial, industrialor otheruses.

CEQA” meanstheCaliforniaEnvironmentalQuality Act, CaliforniaPublic Resources Codesections21000, et seqand StateCEQA Guidelines, Title 14 of the California Codeof Regulations, section15000etseq.

City” meanstheCity of ChulaVista, in theStateof California.

City Manager” meanstheCity Managerof theCity or theirdesignee.

Permit Application” meansan applicationthat demonstratesa good faith attemptto providethe informationrequiredby the City’s DevelopmentServicesDepartmentincluding a SubmittalChecklist, GradingPermit, or Building Permit, as the casemay be, alongwith full paymentof theapplicablefeesdueatthetimeof suchsubmissionpursuantto theTentativeTract Map Conditionsof Approvaland/or the City’s MasterFeeSchedule. The City in its discretion will determinewhen a Permit Application is complete pursuant to applicable Checklist requirements, includingafterreview(s) by City Departments.

Densityper Acre” meansthe numberof residentialunits per net acreof residentially zonedlandthatexcludesanylandareausedfor interiorroads, easements, sidewalks, publicparks or otherareasopento thegeneralpublicon suchresidentiallyzonedland.

Development” meanstheconstruction, reconstruction, conversion, structuralalteration, relocation, maintenanceor enlargementof any structure; any mining, excavation, grading, landfill, or land disturbance; the constructionof roadways, waterandsewerinfrastructureand otherinfrastructureimprovementsdirectlyrelatedto theProjectwhetherlocatedwithin oroutside theProperty; theinstallationof landscapingandotherfacilities andimprovementsnecessaryor appropriatefor theProject; andanyuseor extensionof theuseof land.

DevelopmentImpact Fee” or “DIF” meansassessment, fee, charge or dedication imposedupondevelopmentwithin theCity pursuantto a DevelopmentImpactFeeProgramor equivalentprogram, adoptedin accordancewith therequirementsof Statelaw.

EffectiveDate” meansthefirst dateonwhichall of thefollowing aretrue: (a) theOwner hassignedthe AgreementandreturnedthesignedAgreementto the City; (b) the City Council hasadoptedOrdinanceNo.-------, approvingtheAgreement, saidordinancehasbecomeeffective andthestatuteof limitationsfor a timely challengeto saidordinancehasexpiredor anytimely challengeor suit to suchordinancehasbeenresolvedto thesatisfactionof theCity andOwner; and (c) theCity hasexecutedtheAgreement.

ExistingProjectApprovals” meanstheentitlementsfor theProjectdescribedin Recitals above, andin particularthefollowing: (i) amendmentto theGeneralPlan, (ii) amendmentto the OtayRanchGeneralDevelopmentPlan (iii) anamendmentto FreewayCommercialFC-1, South portion, SPA, (iv) therezoneof theProperty, (v) TentativeMap No. 22-0002, (vi) all associated documentsthat havebeenattachedandmadea part thereof, suchasthe PFFP, definedbelow, and (vii) theFourthAddendumto theFEIR, all asmaybeamendedfrom timeto timeconsistent with thisAgreement. SuchExistingProjectApprovalsaddress, amongotheritems, themaximum heightandsizeof all Projectstructuresor buildings.

Final Map(s)” meansany final subdivisionmapfor all or any portion of the Property uponwhich the Projectis located. TheCity andOwneracknowledgethat, in orderto facilitate developmentof theProject, theFinalMap(s) mayneedslightmodificationsto thenumberedand letteredlot boundariesdepictedontheTentativeTractMap, providedthatthetotaldevelopment footprint for theProjectshallnot change. TheCity andOwnerfurtheracknowledgethatPrivate StreetA mayneedto shift northor southto facilitateProjectdevelopment. Shouldthatoccur, the northernterminationof VistaMiguelRoadandAguaVerdeAvenueshownontheTentativeTract Map may also shift north or south. Shouldthe Final Map include any modificationsto these identifiedstreets, it muststill providefor aprivateroadconnectingVistaMiguel Avenueto Agua VerdeAvenueandthe new extensionof TowneCenterDrive. Any modificationsto the Final Map(s) shall substantiallycomply andconformwith the TentativeTract Map, aswell asmust meetandcomplywith the applicableconditionsandrequirementsof the SubdivisionMap Act CA GovernmentCodesections66410-66499.37), andCity ordinancesandregulationin effect 2091/025068-0045
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whentheTentativeTractMap wasapproved. Further, no provisionsor termof this Agreement shall preventthe City from requiringor imposingan improvementagreementor improvement securityfor theFinalMap(s) asallowedor permittedby theSubdivisionMapAct.

FutureProjectApprovals” meansall discretionaryandministerialpermitsandapprovals requestedby the Ownerandapprovedby the City after the Effective Dateof this Agreement, including, but not limited to: (i) gradingpermits; (ii) site plan reviews; (iii) designguidelines review; (iv) subdivisionsof theProperty, or re-subdivisionsof theProperty; (v) conditionaluse permits; (vi) variances; (vii) encroachmentpermits; (viii) rezoning’s; and (ix) all otherreviews, permits, andapprovalsof anytypewhich mayberequiredfrom time to time to authorizepublic or privateon- or off-sitedevelopmentwhich is apartof theProject.

LegalDescription” meanthelegaldescriptionof thePropertyshownin Exhibit A.

Multi-Family Unit” meansanattachedresidentialunit thatmaybea for-saleor for-rent residentialhousingproduct.

Owner” meanstheperson, persons, or entityhavingafeeinterestin theProperty, or parts thereof, andincludesOwner’s successors-in-interestand “Builder” asdefinedherein.

ParkBenefitFee” meanstheParklandAcquisitionandDevelopment (“PAD”) Fees, at theratein effectatthetimeof building permitissuance.

ParkImprovements” meanstheimprovementspertheCity’sapprovedparkconstruction documents.

ParkLot” meanstheletteredlots (LotsE, F, G andH) designatedfor futureparkacreage consistentwith this documentandTentativeMap No. TM22-0002.

Park Master Plan” meansthe Master Plan as defined in the City of Chula Vista LandscapeManual.

Parklandusableacres” meansan areaof parklandexcludingslopesgreaterthan 4:1 gradient.

PFFP” meansthe PublicFacilitiesFinancingPlanfor the Project, adoptedasa partof theProject.

Phase1 ResidentialDevelopment” means, subjectto Section3.10.1 of this Agreement below, thefirst phaseof developmentof theProjectthatpermitstheconstructionof residential dwelling units, and that, if undertaken, would result in the constructionof no lessthan 100 residentialdwelling units, at a minimumdensityof 20 unitsperacre. As depictedon Exhibit B, suchPhase1 ResidentialDevelopmentis initially intendedto belocatedon Lots3, 4, 6, 9 anda portion of PrivateStreetA andAgua VerdeAvenue, albeit the exactlots andlot lines may be adjustedon the Final Map if consistentwith or permittedby the SubdivisionMap Act. The Phase1 ResidentialDevelopmentshallalsoincludetheextensionof Town CenterDrive, along with the constructionof two north-southprivateroads (all asindicatedon the TentativeTract Mapwith configurationandexactlocationsubjectto minormodificationswhile providingfor the samecirculation). The Phase1 ResidentialDevelopmentshall requiredesignreview and/or a TentativeTract Map, which the City agreesto simultaneouslyreview andprocessat the same timeit processestheFinalMapfor suchphase, in orderto avoidanyunduedelayin theprocessing thereofor thedevelopmentof suchphase. Further, Ownershall submitto theCity a complete and accuratePermit Application(s) for a gradingpermit(s) for the entire Phase1 Residential Development, receive grading permits from the City, and begin grading for the Phase1 ResidentialDevelopment, within the time of the Initial Term of this Agreementidentified in Section2.1 of thisAgreementbelow, or thefailurefor Ownerto dosois subjectto Section3.10.1 of thisAgreementbelow. Further, nolaterthantheendof thetimeor termof theFirstExtension identified and discussedin Section2.2 of this Agreementbelow, all Permit Applicationsfor building permitsfor all Phase1 ResidentialDevelopmentshall be submittedby Ownerto the City, andthe City shall haveissuedall suchbuilding permits, or failure to do so is subjectto Section3.10.1 of this Agreementbelow. Further, no laterthantheendof thetime or termof the SecondExtensionidentified anddiscussedin Section2.2 of this Agreementbelow, subjectto extensionfor force majeure, Owner shall havecompletedvertical constructionand obtained issuanceof Certificatesof Occupancyby theCity for theentirePhase1ResidentialDevelopment, or failure to do so is subjectto the provisionscontainedin the last three (3) sentencesof Section3.10.1 of this Agreementbelow.

Phase2 ResidentialDevelopment” means, subjectto Section3.10.2 of this Agreement below, thesecondphaseof developmentof theProjectthatpermitstheconstructionof residential dwellingunits, andthat, if undertaken, togetherwith thePhase1 ResidentialDevelopmentwould collectivelyresultin thecumulativeconstructionof no lessthan435residentialdwelling units.

In the eventthe Phase1 ResidentialDevelopmentincludesonly 100units residentialdwelling units, thenthe Phase2 ResidentialDevelopmentshall havea minimum densityof 80units per acre. In the event the Phase1 ResidentialDevelopmentincludesmore than 100residential dwelling units, then the Phase2 ResidentialDevelopmentshall have no minimum density requirement, so long asthe full build out of the Phase2 ResidentialDevelopmentcollectively results in at least 435 total residential dwelling units between the Phase1 Residential DevelopmentandthePhase2 ResidentialDevelopment. As depictedonExhibit B, suchPhase2 ResidentialDevelopmentis initially intendedto be locatedon Lots 1, 2, 5, H and portion of PrivateStreetA andVistaMiguel Road, providedthattheexactlotsandlot linesmaybeadjusted on theFinalMapif consistentwith or permittedby theSubdivisionMapAct.

The Phase2 ResidentialDevelopmentshall requiredesignreview and/or a Tentative Tract Map, which the City agreesto simultaneouslyreview and processat the sametime it processesthe Final Map for suchphase, in order to avoid any unduedelay in the processing thereofor thedevelopmentof suchphase. Further, Ownershallsubmitto theCity acompleteand accuratePermit Application(s) for a grading permit(s) for the entire Phase2 Residential Development, andobtainall gradingpermitsto beissuedby theCity for all Phase2 Residential developmentwithin thetimeof FirstExtensionTermidentifiedin Section2.2 of this Agreement below, or the failure for Ownerto do so is subjectto Section3.10.2 of this Agreementbelow.

Further, nolaterthantheendof thetimeor termof theSecondExtensionidentifiedanddiscussed in Section2.2 of this Agreementbelow, all Permit Applicationsfor building permits for all Phase2 ResidentialDevelopmentshall be submittedby Ownerto the City, the City shall have issued all such building permits, and vertical construction for the Phase2 Residential 2091/025068-0045
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Developmentshallhavestartedor failureto do sois subjectto Section3.10.2 of this Agreement below.

Phase3 ResidentialDevelopment” means, subjectto Section3.10.3 of this Agreement below, thethird phaseof developmentof theProjectthatpermitstheconstructionof residential dwelling units, andthat, if undertaken, togetherwith thePhase1 ResidentialDevelopmentand thePhase2 ResidentialDevelopment, wouldcollectivelyresultin thecumulativeconstructionof 840 residentialdwelling units. In the event the first two phasestogetheronly include 435 residentialdwellingunits, thePhase3 ResidentialDevelopmentshallhaveaminimumdensityof 80 units per acre. In the eventthe Phase1 ResidentialDevelopmentand Phase2 Residential Developmentphasestogetherincludemorethan435residentialdwelling units, thenthePhase3 ResidentialDevelopmentshallhaveno minimumdensityrequirement, solong asfull build out collectively resultsin a total of 840units betweenthe threephases. As depictedon Exhibit B, suchPhase3 ResidentialDevelopmentgenerallyis initially intendedto belocatedonLots 7 and

8. The completePermit Application for gradingand building permits for the entire Phase3 ResidentialDevelopmentmust be submittedto the City by Owner, and any requireddesign reviewand/or a TentativeTractMap approvals, which theCity agreesto simultaneouslyreview andprocessat thesametime it processestheFinal Map for suchphase, mustbeissued, andall gradingpermitsandbuilding permitsfor the entirePhase3 ResidentialDevelopmentmustalso be issuedby the City within the time of the SecondExtensiondiscussedin Section2.2 of this Agreementbelow, unlesssuchtimefor submittalis extendedatthediscretionof theCity Council or Lots7 and8 shallrevertto FreewayCommercial (“FC”) zoneasdiscussedin Section3.10.3 of this Agreementbelow, in additionto otherapplicableremediesor resultsdiscussedin this Agreement.

PlanningCommission” meansthePlanningCommissionof theCity of ChulaVista.

Project” meansthe Developmentof the approximately16.59-acrePropertyin oneor morephasesandall relatedprivateandpublicimprovementsonandoff thePropertyasprovided for in the Existing ProjectApprovalsandasmay be authorizedby the City in FutureProject Approvals.

ProjectImprovementsand Infrastructure” meansprivate improvementsand facilities locatedon andoff the Property) constructedto servethe Projectasdescribedin the Existing ProjectApprovalsor as may be imposed, pursuantto the termsof this Agreement, as part of FutureProjectApprovals.

Property” meansthe approximately16.59-acrereal propertydepictedon Exhibit “B.” The Propertyis locatedwithin the approximately73.28 acreOtay RanchTown Centermall Mall Property”).

PublicBenefitContribution” meansaperunit feepayableto theCity for eachresidential unit constructedfor theproject.

TentativeTract Map” meansthe TentativeTract Map for the Project as shown on Exhibit C.

Term” of this Agreementmeanstheperioddefinedin Article 2, below.

ARTICLE 2
TERM

2.1 Term. ThisAgreementshallbecomeeffectiveasto thePropertyupontheEffective Dateandshall continuefor seven (7) years (“Initial Term”) thereafter. In the eventof litigation challengingthis Agreementor the Project, the Initial Term is automaticallysuspendedfor the durationof suchlitigation andresumesuponfinal dispositionof suchchallengeandany appeal thereofupholdingthe validity of this Agreementor the Project. In the eventthat a referendum petitionconcerningthisAgreement, theExistingProjectApprovals, or Projectis duly filed in such a mannerthat the ordinanceapprovingthis Agreement, the Existing ProjectApprovals, or the Project is suspended, then the Initial Term is deemedto commenceupon City Council’s certification of the resultsof the referendumelection affirming this Agreement, the Existing ProjectApprovals, or theProjectasthecasemaybe.

2.2 Extension. The Term shall be extendedfor any period of time during which processingof a completePermitApplicationor Projectapplicationis suspendedfor any reason, otherthandueto theactionsor thedefaultof theOwner, includingtheOwner’s failure to timely submitto theCity or otherapplicablegovernmentagenciesor jurisdictionscompleteapplications or materialsrelatingto anyProjectdevelopmentapprovalsor permits, andfor suchperiodof time equalto theperiodof timeduringwhichanyactionby theCity or courtactionlimits theprocessing of suchProjectapplications, FutureProjectApprovals, issuanceof building permitsor anyother developmentof thePropertyconsistentwith this Agreement. TheCity will processall complete applicationsfor the Project, FutureProjectApprovalsor issuanceof building permitsto Owner consistentwith applicablelaws, including the PermitStreamliningAct (California Government Codesection65920et seq.). Upon Owner’s submissionto the City during the Initial Term of a completePermitApplication, designreview application, and/or final map (with paymentof all applicablefees) for theentirePhase1 ResidentialDevelopment, anduponthecommencementof gradingfor thePhase1 ResidentialDevelopmentduringtheInitial Term, theInitial Termof the Agreementshallbeextendedandsuchextensionshallbeconfirmedby writtenacknowledgement signedby bothPartiesuntil thedatethatis five (5) years (“First Extension”) from thedateof the end of the Initial Term. Upon Owner’s submissionto the City during the First Extensionof a completePermit Application for the entire Phase2 ResidentialDevelopment, and upon the commencementof gradingof the Phase2 ResidentialDevelopmentduring the First Extension, this Agreement shall be extended and such extension shall be confirmed by written acknowledgementsignedby bothPartiesfor three (3) additionalyears (“SecondExtension”) from thedateof thelastdayin theFirstExtension. Thetermof thisAgreement (the “Term”) shallmean theInitial Termplus, if applicable, theFirst ExtensionandtheSecondExtension, subjectto any additionaltimeaddedasagreedto in writing by theCity for anywrittensuspensionof processing of completeapplicationsfor theProject, FutureProjectApprovalsor issuanceof building permits to Ownernotcausedor resultingfrom theactions, or theinactions, of theOwner.

Notwithstandingany other provision of Article I ( Definitions) or Section2.2 of this Agreement, beforethe endof the SecondExtensionTerm of this Agreement, or beforefifteen 15) yearsaftertheEffectiveDateof theAgreement, subjectto anyadditionaltime addedto the Agreementas agreedto in writing by the City, Owner shall have obtainedfrom the City 1) approvalor issuanceanyandall requireddesignreviewand/or aTentativeTractMapandFinal Map approvalsfor theentireProjectPhases1, 2 and3 ResidentialDevelopments, (2) approvalor 2091/025068-0045
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issuanceanyandall requiredgradingandbuildingpermitsfor theentireProjectPhases1, 2 and3 Residential Developments, (3) completion of construction and issuanceof Certificates of Occupancyby theCity for theentirePhase1 ResidentialDevelopment, and (4) thestartof vertical constructionfor theentirePhase2 ResidentialDevelopment, or thefailure for Ownerto do sois subjectto Section3.10of this Agreementbelow

2.3 CovenantsRunning with the Land. As of the Effective Date, the terms and provisionsof this Agreementareenforceableby thepartiesasequitableservitudesaffectingthe Property, constitutingcovenantsrunning with the land pursuantto California law including, withoutlimitation, Civil Code § 1468. Eachcovenanthereinto actor refrainfrom actingis for the benefitof or a burdenupontheProperty, runswith theProperty, andis bindinguponOwnerand thesuccessorsandassignsof Ownerduringtheirrespectiveownershipof theProperty.

2.4 Executionand Recordation. The City shall promptly executethis Agreement within thirty (30) daysfollowing City Councilapproval. TheCity mayexecutetheAgreementin counterpartsas set forth in Section15.5 herein. Within 10 daysafter the Agreementhasbeen executedby theCity, theCity Clerk shallnotify theOwnerof suchexecutionandprovideOwner theAgreementfor recordation. TheOwnershallcausetherecordationof suchAgreementagainst the Property (andno otherportion of the Mall Property) andprovidethe City with a confirmed copy within ten (10) businessdaysfollowing its recordation. Notwithstandinganythingto the contrarycontainedherein, nothingin this Agreementshallbind anyportionof theMall Property otherthantheProperty. ThePartiesrecognizeandacknowledgethatthepreciseboundariesof the Propertymaydiffer slightly from thatdescribedin Exhibit A anddepictedin Exhibit B, andagree to cooperatewith eachotherto updatesuchexhibitsuponrecordationof thefinal map(s) thatwill createthelegalparcelscomprisingthePropertyto replacetheinitial exhibitswith updatedexhibits thatincludereferencesto thenewlot numbersin placeof themetesandboundsdescription. The Partiesfurtheragreethatanysuchupdateto clarify thepreciseboundariesof thePropertyshallbe treatedasa Minor Modification, providedthe subjectfinal mapsubstantiallyconformswith the subjecttentativemapasrequiredby theSubdivisionMapAct.

ARTICLE 3

VESTEDRIGHTS

3.1 VestedRights. Subjectto Sections2.2 and3.10of thisAgreement, Ownerisvested with theright to developandmaintainthePropertyto the land uses, densitiesandintensitiesof use, andthe reservationsanddedicationof land for public purposesasprovidedin the Existing ProjectApprovals, assuchapprovalsmaybeamendedfrom timeto time, andsubjectto Applicable Lawsandasfurtherprovidedin Section3.3.1 below. If FutureProjectApprovalsareobtainedby Owner, theyshallbevestedto thesameextentastheExistingProjectApprovals.

3.2 Maximum Height andSizeof Structures. The maximumheightof seventyfive 75) feetandsizeof structuresto be constructedon theProjectwill begovernedby theExisting ProjectApprovals.

3.3 ApplicableLaw. As providedby thisAgreement, therules, regulationsandofficial policies (includingGeneralPlanpolicies, Administrativecodes, ordinances, resolutionsandother locallaws, regulationsandpoliciesof City) governingthepermitteduses, thedensityandintensity of use, the design, improvement and construction standardsand specifications of any improvementsandthemitigation of impactsof theProject (exceptasidentifiedanddiscussedat Sections3.5 and 9.3 of this Agreementbelow), shall be thosein full force and effect on the EffectiveDate (“ApplicableLaw”). ApplicableLaw includestheExisting ProjectApprovals, as theymaybeissuedor amendedfrom timeto time, in a mannerconsistentwith boththetermsand provisionsof thisAgreement. TheCity shallretainits discretionaryauthorityasto amendmentsto Existing ProjectApprovalsandto FutureProjectApprovals, providedhowever, suchdecisions shallberegulatedby theApplicableLawsandasfurtherprovidedin Section3.3.1 below.

3.3.1 Amendments. Subjectto Sections3.5 and9.3 of this Agreementbelow, by way of example, amendmentsthat would hinder, impedeor causean unreasonabledelay or increasein costof theProjectasauthorizedby theExistingProjectApprovalsandthereforewould beconsideredin conflict with theApplicableLawsincludeamendmentsthatwould:
i) Preventall or a portion of the Projector the Propertyfrom being developed, used, operatedor maintainedin accordancewith the terms and provisionsof this Agreement, ExistingProjectApprovals, or ApplicableLaws; ii) Limit or reducethe overall density, intensityor unit count of the Project, or anypartthereof, to a density, intensityor unit countthatis lower thanthatspecifiedin this Agreement, ExistingProjectApprovalsor ApplicableLaws; iii) Modify anylandusedesignationor conditionaluseof theProperty in amannerinconsistentwith this Agreement, ExistingProjectApprovals, or ApplicableLaws; iv) Limit or control the rate, timing, phasingor sequencingof the approval, development, constructionor occupancyof all or anyportionof theProjector Property exceptasspecificallypermittedby this Agreement;
v) Subjectto Sections3.5 and 9.3 of this Agreementbelow, impose any condition, dedicationor exactionthat would conflict with this Agreement, Existing Project Approvals, or ApplicableLaws;
vi) Requirethe issuanceof discretionarypermitsor nondiscretionary permits, to theextentsuchpermitsimposenewor differentsubstantiverequirementsonOwneror theProjectthatarenototherwiserequiredby ApplicableLaws, ExistingProjectApprovals, or this Agreement;
vii) Apply to the Project any provision, condition or restriction that would beinconsistentwith this Agreement, ExistingProjectApprovals, or ApplicableLaw; viii) Apply to theProjectanyrentcontrolor pricecontrolprovisionsor tenantprotectionsor uniform or prevailingwagerequirementsexceptto theextentrequiredunder statelaw, unlessotherwisepermittedby this Agreement;
ix) Limit or control the location of buildings, structures, grading, or otherimprovementsof the Projector thePropertyin a mannerthat is inconsistentwith or more 2091/025068-0045
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restrictive than the limitations included in this Agreement, Existing Project Approvals, or ApplicableLaws;
x) Limit or control the availability of public utilities, servicesor facilities or anyprivilegesor rightsto public utilities, servicesor facilities in a mannerotherthan asspecificallysetforth in this Agreementor ApplicableLaw (for example, waterrights, water connectionsor wastewatertreatmentcapacityrights, sewerconnections, etc., if underthecontrol or jurisdictionof theCity) for theProjector theProperty; xi) Apply to theProjector the PropertyanyCity Law allowedby this Agreementthatis not uniformly appliedon a City-wide basisto otherdevelopmentprojectsand properties;
xii) ( exceptasidentified anddiscussedat Sections3.5 and9.3 of this Agreementbelow), establish, enact, increase, or imposeagainsttheProjectanyfees, Development Impact Fees, assessments, liens or other monetaryobligationsother than (i) thosespecifically permittedby this Agreement, and (ii) City-wide taxesandassessments (providedsuchCity-wide taxesor assessmentsarenot disproportionatelyappliedto theProperty); or xiii) Limit theprocessingor issuanceof amendmentsto ExistingProject Approvalsor FutureProjectApprovalsotherthanasspecificallysetforth in this Agreementor ApplicableLaw.

3.4 DevelopmentImpactFees. All ProjectDevelopmentImpactFeeswill bepaidprior to final inspectionof anybuildingpermitsfor theProjectunlessotherwisenotedin thisAgreement.

DevelopmentImpactFeesandpermitapplicationamountswill bebasedontheratesetforth in the City’s MasterFeeScheduleat the time thefeesarepaid for any building permit in eachPhased ResidentialDevelopment. Ownerunderstandsthat the feessetforth in the MasterFeeSchedule aresubjectto annualincreaseseveryOctober1st.

3.5 ReservedAuthority. The City may apply changesin City Laws, regulations, ordinances, standardsor policies specifically mandatedby changesin stateor federal law in compliancewith Article 10 herein. This provision shall not affect any mitigation measures requiredof Ownerundertheenvironmentaldocumentcertifiedfor theProject.

3.6 Owner’s Optionto Apply New Rules. Ownermayelect, with theCity Manager’s consent, to haveappliedto the Projectany rules, regulations, policies, ordinances, or standards enactedafter the Effective Date of this Agreement. The City Managershall not unreasonably withhold saidconsent.

3.7 Modificationsto Existing ProjectApprovals. It is contemplatedby thePartiesto this Agreementthat the Ownermay seekmodificationsto the Existing ProjectApprovalsfrom time to time. Thesemodificationsarecontemplatedaswithin the scopeof this Agreementand shall, if approvedby the City, be incorporatedinto andconstitutefor all purposesan Existing ProjectApproval. OwnerandCity agreethatanysuchmodificationsto ExistingProjectApprovals will notconstituteanamendmentto this Agreementnor requireanamendmentto theAgreement.

TheCity shallprocessandacton suchapplicationsin accordancewith theapplicableprovisions of theApplicableLaw.

3.8 MoratoriumandotherLimitations. Subjectto Sections3.9, 9.3 and10.1 of this Agreementbelow, thisProjectisexemptfrom anymoratoriumorotherlimitation (whetherrelating to therate, timing, phasingor sequencingof development) affectingsubdivisionmaps, building permits, certificatesof occupancyor other land use entitlementsthat are approvedor to be approved, issuedor grantedwithin theCity. To themaximumextentpermittedby law, City must preventanyCity Law from invalidatingor prevailingoverall or anypartof this Agreement, and City mustcooperatewith Ownerandundertakesuchactionsasneededto ensurethis Agreement remainsin full forceandeffect. If City appliesto theProjecta City Law thatOwnerbelievesto conflict with ApplicableLawsorthisAgreement, Ownermaytakesuchactionasmaybepermitted underSection12.16 andArticle 8 herein. Exceptasallowedunderthis Agreement, City mustnot support, adoptor enactanyCity Law, or takeanyotheraction, which would violatetheexpress provisionsof thisAgreementor theExistingProjectApprovals. Ownermayalsochallengein court any City Law that would conflict with Applicable Laws or this Agreementor reducethe developmentrights provided by this Agreement, in accordancewith the dispute resolution provisionsof Section12.19 below.

3.9 StateandFederalLaw. As providedin GovernmentCode § 65869.5, in theevent thatstateor federallawsor regulations, enactedaftertheEffectiveDate (“Changesin theLaw”) preventor precludecompliancewith oneor moreprovisionsof this Agreement, suchprovisions of the Agreementwill be, by operationof law, modified or suspended, or performancethereof delayed, asandto theextentthatmaybenecessaryto complywith suchChangesin theLaw.

3.10 Timefor ConstructionandCompletionof Project. BecausetheCaliforniaSupreme Courtheldin PardeeConstructionCo. v. City of Camarillo, 37Cal. 3d465 (1984), thatthefailure of the partiesto provide for the timing of developmentresultedin a later adoptedinitiative restrictingthetiming of developmentto prevailoversuchparties’ agreement, it is theintentionof theCity andOwnerto curethatdeficiencyby specificallyacknowledgingthattiming andphasing of developmentis completelyandexclusivelygovernedby theExistingProjectApprovals, except assetforth herein. Notwithstandinganythingto thecontrarycontainedherein:

3.10.1 In the event Owner does not submit a complete grading Permit Application to the City, receivedesignreview and/or a TentativeTract Map approvalsfrom the City, obtainFinalMapapproval, obtaingradingpermits, andbegingrading, all asfor or relatedto theentirePhase1 ResidentialDevelopmentduringtheInitial Term, subjectto extensionfor force majeure (definedin Section12.11 of this Agreementbelow), this Agreementshall immediately andautomaticallyterminate, unlessextendedat the discretionof the City Council, andthe City shallhavetheright to initiate a rezoningactionto revertthezoningof Lots1, 2, 3, 4, 5, 6, and9 to FreewayCommercial (“FC”) zoning. Further, no laterthanthe endof thetime or term of the First Extensionidentified and discussedin Section2.2 of this Agreementabove, all Permit Applicationsfor building permitsfor all PhaseI ResidentialDevelopmentshallbesubmittedby Ownerto theCity, andtheCity shallhaveissuedall suchbuildingpermits, or thisAgreementshall immediatelyandautomaticallyterminate, unlessextendedat the discretionof the City Council, andtheCity shallhavetheright to initiatearezoningactionto revertthezoningof Lots1, 2, 3, 4, 5, 6, and9 to FCzoning. Further, nolaterthantheendof thetimeor termof theSecondExtension identified anddiscussedin Section2.2 of this Agreementabove, subjectto extensionfor force majeure, Ownershallhavecompletedverticalconstructionandobtainedissuanceof Certificates of Occupancyby theCity for theentirePhase1 ResidentialDevelopment, or theCity shallhave 2091/025068-0045
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the right to initiate a rezoningactionto revertthe zoningof Lots7 and8 to FC zoning. Owner herebyconsentsto suchrezoningandwaivesany right andability to contestsuchrezoning. The constructionof thePhase1 ResidentialDevelopmentwill includetheextensionof Town Center Drive (asindicatedontheTentativeTractMap).

3.10.2 In the event Owner does not submit a complete grading Permit Application to the City, receivedesignreview and/or a TentativeTract Map approvalsfrom the City, obtainFinal Map approval, andobtaingradingpermits, all as for or relatedto the entire Phase2 ResidentialDevelopmentwithin thetermof theFirstExtensionTerm, subjectto extension for force majeure (defined in Section12.11 of this Agreementbelow), this Agreementshall immediatelyandautomaticallyterminate, unlessextendedat the discretionof the City Council, andtheCity shallhavetheright to initiate a rezoningactionto revertthezoningof Lots1, 2, and 5 to FCzoning. Further, nolaterthantheendof thetimeortermof theSecondExtensionidentified anddiscussedin Section2.2 of thisAgreementabove, all PermitApplicationsfor buildingpermits for all Phase2 ResidentialDevelopmentshallbe submittedby Ownerto theCity, theCity shall have issuedall such building permits, and vertical constructionfor the Phase2 Residential Developmentshall havestarted, or the City shall havethe right to initiate a rezoningactionto revertthezoningof Lots 1, 2, and5 to FC zoning. Ownerherebyconsentsto suchrezoningand waivesanyright andability to contestsuchrezoning.

3.10.3 In theeventOwnerhasnot, beforetheendof theSecondExtensionTerm of this Agreement, or beforefifteen (15) yearsaftertheEffectiveDateof theAgreement, subject to extensionfor force majeure (defined in Section12.11 of this Agreementbelow) and any additionaltimeaddedto theAgreementasagreedto in writing by theCity, obtainedfrom theCity 1) approvalor issuanceanyandall requireddesignreviewand/or aTentativeTractMapandFinal Map approvalsfor theentireProjectPhases1, 2 and3 ResidentialDevelopments, (2) approvalor issuanceanyandall requiredgradingandbuilding permitsfor theentireProjectPhases1, and2 and3 ResidentialDevelopments, and (3) completionof constructionandissuanceof Certificates of Occupancyby the City for the entirePhase1 ResidentialDevelopment, and (4) the startof vertical constructionfor the entire Phase2 ResidentialDevelopment, this Agreementshall immediatelyandautomaticallyterminateandthe City shall havethe right to initiate a rezoning actionto revertthezoningof Lots 7 and8 to FCzoning. Ownerherebyconsentsto suchrezoning andwaivesanyright andability to contestsuchrezoning.

ARTICLE 4

PROCESSINGPROJECT

4.1 Processingof Future Project Approvals. City will accept for processing developmentapplicationsandrequestsfor FutureProjectApprovals, or otherentitlementswith respectto thedevelopmentanduseof thePropertyandwill considersuchmattersin accordance with the appropriateprocessset forth in the Applicable Laws. The City will diligently work towardsthetimely issuanceof suchentitlements, includinggradingplans, improvementplans, and other plansor permits, as neededto issuebuilding permits. City shall retain its discretionary authorityto acton FutureProjectApprovalsandapply City Lawsto suchmatters, providedthe City Laws do not conflict with Applicable Laws or the rights providedby this Agreement. In addition, the City may also apply changesin City Laws, regulations, ordinances, standardsor policiesspecificallymandatedby changesin stateor federallaw in compliancewith Article 10 herein.

4.2 Length of Validity of Tentative Subdivision Maps. Government Code section66452.6 providesthattentativesubdivisionmap(s) mayremainvalid for alengthupto the termof aDevelopmentAgreement. TheCity agreesthatall tentativesubdivisionmaps (vestingor otherwise) for theProject, shallbefor atermcoterminouswith thelengthof this Agreement.

4.3 Pre-Final Map Development. If Ownerdesiresto do certainwork on theProperty for example, grading) afterapprovalof atentativemap, butprior to therecordationof afinal map, it maydo soby obtaininga gradingpermitand/or otherrequiredapprovalsfrom theCity prior to recordationof a final map. The permit or approvalmay be approvedor deniedby the City in accordancewith therequirementsof theApplicableLawsandotherCity regulationsor policiesas maybeapplicable; providedtheOwneris in compliancewith this Agreementandwith theterms of all ExistingProjectApprovalsandFutureProjectApprovals. In addition, the Ownershall be requiredto post a bond or other reasonablyadequatesecurityrequiredby City in an amount reasonablydeterminedby the City to assurethe rehabilitationof the land if the applicablefinal mapdoesnotrecord.

4.4 Transferof RightsandObligationsof Development. WheneverOwnerconveysa portionof theProperty, therightsandobligationsof this Agreementshalltransferin accordance with Article 5 herein.

4.5 Cooperationwith respectto ProjectImprovementsandInfrastructure. TheParties shallreasonablycooperatewith eachotherto takeall actionsnecessaryandappropriateto facilitate thetimely developmentof ProjectImprovementsandInfrastructure.

4.6 City’s Acceptanceof Dedications. Owner offers of dedicationrequiredby this Agreementor theExistingProjectApprovalsmustbeacceptedby City within a reasonabletime, providedthattheapplicableimprovementsarecompletedconsistentwith ApplicableLaw.

4.7 CommunityPurposeFacilities. Owneris requiredto providelandfor community purposefacilities (“CPF”) basedupona ratioof 1.39acresper1,000residentsin accordancewith Section19.48.025 of the City’s Municipal Code. For example, for 435units, Ownerwould be requiredto provide approximately1.56 acresat full build out. For the maximum density of 840multifamily residentialunits, Ownerwould berequiredto provideapproximately3.01 acres atfull build out. If built in phasestheCPFrequirementshallbeproportionalto thenumberof units built. A populationfactorof 2.58residentsperunit appliesto this calculation.

TheOwnershallenterinto a CPFagreementwith theCity prior to recordationof thefirst Final Map for theProjectwhich couldincludeoneor bothof thefollowing methodof alternative complianceto ChulaVistaMunicipalCode (“CVMC”) Chapter19.48.025:
i) Provide excessof 10% affordableresidentialunits basedon the numberof unitsbuilt in theProject.
ii) Provideindoorcommunityspaceon theMall Propertyat a ratio of 7,800 squarefeet of affordableCPF spaceper 1 acreof requiredcommunitypurposefacility 2091/025068-0045
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obligation. TheaffordableCPFspacewould beprovidedanallowancefor tenantimprovements thatwouldresultin arentfreespaceontheMall Property. Thisconversionis basedonFloorArea Ratio (“FAR”) conversionusingthebelowmethodology:

The existingcenterhasapproximately670,000 squarefeet of commercialdevelopment.

TheMall Propertyis 78.29 acreswhich equatesto a FAR of 0.196. Applying this methodology equatesto thebelowproposedindooraffordableCPFspacesquarefootage:
435units1.56acres0.19613,319sf840units3.01acres0.19625,699sf Usesfor this spacewould include but not be limited to servicesoutlined in CVMC Chapter19.48.025, or otherusesasapprovedby the Director of DevelopmentServices, or their designee.

4.8 ParklandObligations. Owneris requiredto complywith theCity’s Parklandsand PublicFacilitiesOrdinance, ChulaVistaMunicipalCode (“CVMC”) Chapter17.10 (“PLDO”), as amended, in effect at the time of issuanceof any building permit for the Project. The PLDO requiresnew residentialdevelopmentprojectsto provideland andimprovementsfor parksand recreationalfacilities, allowsfor a creditagainstthepaymentof in-lieu feesor dedicationof land if thedeveloperprovidestheparkandrecreationalimprovements, andpermitstheCity to require acombinationof dedicationandpaymentof in-lieu feesif theCity determinesthatthecombination would betterservethepublic.

The Projectis requiredto provide up to 6.57 usableacresof developedparklandif the constructionreachesthe maximumdensityof 840 multi-family residentialunits, baseduponthe personsperhouseholdfactorestablishedby thePLDO of 2.61 personsperattachedmulti-family dwelling unit and3.0 usableacresof parkper 1,000 residents. If built in phases, the amountof parklandprovidedin eachphaseshallbeproportionalto theunitsbuilt asindicatedin thebelow chart.

TheCity, by enteringinto thisAgreement, findsthat, dueto theunique, urban, high-density natureof the Projectandits proximity within theOtay RanchTown Centermall, Ownercannot providesuitablelandto satisfytheentire6.57usableacreparklandrequirementsolelythroughthe dedicationandimprovementof parkland. TheCity furtherfindsthat, asaresultof theurban, high- densitynatureof theProject, thepublicinterestandtheparkandrecreationneedsof theProject’s future residentswould be better servedthrough a combinationof parklandacreage, parkland developmentimprovements, andin-lieu fees.

The parklandobligation for the first 350units developedas part of the Projectshall be satisfiedvia the provision of on-site privately maintainedparkland, which shall be opento the public, at a rateof 0.80 usableacresof parklandfor every100 residentialunits, asoutlinedin Column D of the below table. After constructionof the 350th residentialunit, the remaining parklandobligationof upto 4.01 usableacreswill besatisfiedvia paymentof in-lieu parkbenefit fees. Theparkbenefitfeeamountis equalto theParklandAcquisitionandParklandDevelopment feesat the time of building permit issuancefor any building permit for the Project. ParkLots E and F shall not be providedpark developmentcredit for existing park amenitiesand shall be requiredto pay the in-lieu developmentfees. Upon the Building Permit triggerslisted below, Ownermusthavesubmitteda formal submissionpackagefor thedesignfor therequiredusable parklandacreagefor theapplicableProjectphaseto theCity of ChulaVista:

OwnershallusetheCity’scustomaryproceduresto designandobtaintheCity’sreasonable approvalfor thedesignof theParkslistedabove. TheParksshallbedesignedconsistentwith the applicablerequirementsof anapprovedParkMasterPlan, theCity’s LandscapeManualandthe City’sParksandRecreationMasterPlan. TheProject’sParkMasterPlanoncecompleted, shallbe presentedto the Parks & RecreationCommissionandmustbe approvedby City Council. Each identified ParkLot may havea MasterPlanor all identified ParkLots may be includedin one MasterPlan.

4.9 Park Budget. The constructioncosts establishedat the time the Park Lot constructiondocumentsareapprovedby theCity andshallreflecttherequirementestablishedby theparklanddevelopmentcomponentof thePLDOatthetimeit is due. TheOwneror its successor shallsubmitfor City reviewandobtainCity approvalof theParkLot constructionbudgetfor each ParkLot prior to constructioncommencement.

4.10 ParkMaintenanceEstablishmentPeriod. Theperiodof time betweenCompletion of ConstructionandtheCity’s final approvalof thecompletedParkLot, asidentifiedin theabove table, in which thecontractoris responsiblefor maintainingtheParkLot to ensurethattheplant materialis fully establishedbeforeits openedfor public use, andthat otherpark improvements such as irrigation systems, electrical systems, and park equipmentor facilities that are fully operationaland functional. The duration of this period and maintenanceoperationswill be specifiedin the contractdocumentsfor eachPark Lot, subjectto reasonableadjustmentsas determinedby the City's Director of DevelopmentServices, or their designee, in their sole discretion.

4.11 Documentationof Costsfor Park Lots. Owner shall, within sixty (60) days of Completion of Constructionof the Park Lot, provide City, for its review and approval, all documentationCity reasonablyrequiresto evidencethe completionandcostsof the Park Lot.

Developershall, within sixty (60) daysof completionof theMaintenanceEstablishmentPeriod, provide the City, for its review and approval, all documentationCity reasonablyrequiresto evidencethesatisfactorycompletionof theMaintenanceEstablishmentPeriod.

A B C D
Building Permit
Trigger
Lettered Park Lot
per TentativeMap
Lot Acreage Parkland Usable
Acres
100thresidentialunit Lot H 0.76 0.76
150thresidentialunit Lot G 0.38 0.38
262ndresidentialunit Lot F 0.87 0.70*
350thresidentialunit Lot E 0.72 0.72
TOTAL 2.73 2.56
Slopesareaswithin theparkboundariesgreaterthan4:1 areineligiblefor parkcredit. 2091/025068-0045
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4.12 Securityfor ParkLot construction. Upon the commencementof constructionof anyParkLot, theOwnershallpostsecurity, includingoneor morebondsin accordancewith the CVMC, for theconstructionof theParkLot. City mayusethatsecurityto completeconstruction of suchParkLot shouldOwnerfail to meetits obligationsto do so. City mayreduceandrelease thesecuritiespursuantto City's customaryproceduresandschedulespro ratauponcompletionof theparklot. Bondshallbebasedon theacceptedBid amountfor constructionof theParkLot and shallbein placeprior to commencementof constructionof theParkLot.

4.13 Public Benefit Contribution. Owner shall pay the City $5,000 per residential dwelling unit developedpursuantto this Agreementasapublic benefitcontribution. Saidamount shall be paid no later thanthe time of final inspectionby the City for suchresidentialdwelling units. In additionto otheravailableremediesto theCity in this Agreement, failure by Ownerto timely pay the Public Benefit Contributionshall resultin the City immediatelyandindefinitely suspendingandwithholdingtheprocessingof anyProjectapplication, theinspectionor reviewof anyProjectpermit, andtheissuanceof anycertificateof occupancyrelatingto theProject.

ARTICLE 5

PARTIAL TERMINATION

5.1 Terminationof Agreementwith Respectto Lots to Public. The provisionsof Article 5 shallnot applyto thesale, or lease (for a periodlongerthanoneyear) of anylot which hasbeenfinally subdividedandis individually (andnot in “bulk”) soldor leasedto a memberof the public or other ultimateuserwho intendsto occupythe parcel. Notwithstandingany other provisionsof thisAgreement, thisAgreementshallterminatewith respectto anysuchlot andsuch lot shall be releasedand no longer be subject to this Agreementwithout the executionor recordationof any further documentupon the saleof suchlot as set forth in the immediately precedingsentence.

5.2 PartialTermination. The Ownerhasthe right to requestthat the City approvea partialterminationof thisAgreement, to releaseaportion(s) of thePropertyfrom theAgreement’s obligationsandbenefits. A partialterminationshallbeapprovedby theCity if Ownerdemonstrates to City thattheportion(s) of thePropertyto bereleasedfrom theAgreement’s obligationsis/are not neededto satisfyany of the obligationsestablishedin this Agreement. If City makessucha determination, suchreleasedpropertyshallnot besubjectto anyof theobligationscreatedin this Agreement, and, similarly, shallnot receiveanyof thebenefitsgrantedin this Agreement.

5.3 Releases. City agreesthat uponwritten requestof Ownerandprovidedthat all paymentsandtherequirementsandconditionsrequiredby thisAgreementandtheExistingProject ApprovalsandanyapplicableFutureProjectApprovalshavebeenfully performedandsatisfied in the City’s determination, with respectto the ReleasedProperty (defined below) City may executeanddeliverto Ownerappropriaterelease(s) of obligationsimposedby this Agreementin a form (attachedto this AgreementasExhibit D) andsubstanceacceptableto the City andthe CountyRecorderandtitle insurancecompany, if any, or asmayotherwisebenecessaryto effect thereleaseof aportionof theProperty (“ReleasedProperty”) to anindividualhomebuyerorparcel of propertythat hasbeenbuilt out and sold to an ultimate consumer. City Managershall not unreasonablywithholdapprovalof suchrelease(s).

ARTICLE 6

ANNUAL REVIEW

6.1 City andOwnerResponsibilities. TheCity will, at leasteverytwelve (12) months during the Term of this Agreement, pursuantto California GovernmentCodesection65865.1, reviewtheextentof goodfaith substantialcomplianceby Ownerwith thetermsof thisAgreement.

Pursuantto CaliforniaGovernmentCodesection65865.1, asamended, Ownershallhavetheduty to demonstrateby substantialevidenceits goodfaith compliancewith thetermsof thisAgreement attheperiodicreview. EitherCity orOwnermayaddressanyrequirementof theAgreementduring thereview.

6.2 ReviewLetter. If Owneris foundto bein compliancewith this Agreementafter the annualreview, City shall, within forty-five (45) daysafter Owner’s written request, issuea reviewletterin recordableform to Owner (“Letter”) statingthatbaseduponinformationknownor madeknown to the City Council, the City PlanningCommissionand/or the City Manager, this Agreementremainsin effectandOwneris not in default. TheownermayrecordtheLetterin the Official Recordsof theCity of SanDiego.

6.3 Failure of PeriodicReview. City’s failure to review at leastannuallyOwner’s compliancewith thetermsandconditionsof thisAgreementshallnotconstitute, or beassertedby City or Owneras, a defaultby Owneror City with respectto theAgreement, or preventtheCity from raisingat anytime anyissueaboutOwner’s compliancewith theAgreement.

ARTICLE 7

ENCUMBRANCESAND RELEASESON PROPERTY

7.1 Discretionto Encumber. This Agreementshallnot preventor limit Ownerin any manneratOwner’ssolediscretion, from encumberingtheProperty, or anyportionof theProperty, or anyimprovementontheProperty, including, withoutlimitation, by anymortgage, deedof trust, or othersecuritydevicesecuringfinancingwith respectto all or anyportionof thePropertyor its improvement. Any suchmortgage, deedof trust, or othersecuritydevicesecuringfinancingshall besubordinateto theCity’s interestsin this Agreement.

7.2 MortgageeRightsandObligations. Themortgageeof amortgageor beneficiaryof a deedof trust encumberingthe Property, or any part thereof, andtheir successorsandassigns shall, uponwritten requestto City, be entitledto receive, from City written notification of any defaultby Ownerof theperformanceof Owner’s obligationsundertheAgreementwhich hasnot beencuredwithin thirty (30) daysfollowing thedateof default. If thereareno suchdefaultsby Owner, theCity Managershallnotify therequestingPartyof thatfactin writing.

7.3 Subordination. Owner agreesto enter into subordinationagreementswith all lendershavinga mortgage, deedof trust, lien, or othersecuritydevicesecuringfinancingwith respectto the Propertyor its improvementto ensurethat the provisionsof this Agreementbind suchmortgageholders, trustholders, lienholders, or securitydeviceholdersshouldtheytaketitle to all or part of the Propertythrougha quitclaim deed, sale, foreclosureor any othermeansof transferof property. As aconditionprecedentto obtainingthebenefitsthataccrueto theOwneror thePropertyunderthisAgreement, thisAgreementby andthroughsaidsubordinationagreements 2091/025068-0045
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shall be prior and superiorto suchmortgages, deedsof trust, liens, or other securitydevices securingfinancingwith respectto thePropertyor its improvement. Theownershalldeliverto the City thefully executedsubordinationagreementsfor thePropertyin aform acceptableto theCity Manageror theirdesigneeandsuitablefor recording, prior to thesecondreadingof theordinance adoptingtheAgreement.

ARTICLE 8

DEFAULT

8.1 Eventsof Default. A default under this Agreementshall be deemedto have occurreduponthehappeningof oneor moreof thefollowing eventsor conditions:
i) A warranty, representationor statementmade or furnished by Ownerto City is falseor provesto havebeenfalsein anymaterialrespectwhenit wasmade. ii) A finding and determinationby City madefollowing a periodic reviewundertheprocedureprovidedfor in CaliforniaGovernmentCodesection65865.1 thatupon the basisof substantialevidenceOwnerhasnot substantiallycompliedwith oneor moreof the materialtermsor conditionsof this Agreement.
iii) City does not accept, timely review, or consider requested developmentpermits or entitlementssubmitted in accordancewith the provisions of this Agreement.
iv) Owner fails to comply with any other materialOwner obligation underthetermsof this Agreement.
v) City fails to comply with any othermaterialCity obligationunder thetermsof this Agreement.

If eitherPartydefaultsunderthis Agreement, the Partyallegingsuchdefaultwill give the breachingPartynot lessthanthirty (30) days’ noticeof defaultin writing. The noticeof defaultwill specifythe natureof the allegeddefault, and, whereappropriate, the mannerand periodof time, which shallnot belessthan30days, in whichsaiddefaultmaybesatisfactorily cured. Wherethedefaultcannotbecuredwithin theperiodof time provided, but canbecured within a longertime, the Partychargedwill not be consideredin defaultfor the purposesof terminationor institutionof legalproceedingsif suchPartyhascommencedto curesuchdefault within the time provided and thereafterpursuessuch cure to completion with reasonable diligence. If thedefaultis cured, thenno defaultwill exist andthenoticingPartywill takeno furtheraction.

8.2 Option to Set Matter for Hearingor Institute Legal Proceedings. After proper noticeandthe expirationof the cureperiod, the noticing Partyto this Agreement, at its option, may (i) institutelegalproceedingsor (ii) schedulehearingsbeforethePlanningCommissionand theCity Councilfor adeterminationasto whetherthisAgreementshouldbemodified, suspended, or terminatedasaresultof suchdefault.

8.3 Waiver. Nothingin this Agreementshall bedeemedto bea waiverby Owneror City of any right or privilege held by Owneror City pursuantto federalor statelaw, exceptas specifically providedherein. Any failure or delay by a Party in assertingany of its rights or remediesasto anydefaultby theotherPartywill not operateasa waiverof anydefaultor of any suchrightsor remediesor deprivesuchPartyof its right to instituteandmaintainanyactionsor proceedingswhichit maydeemnecessaryto protect, assert, orenforceanysuchrightsorremedies.

8.4 RemediesuponDefault. In theeventof adefaultby eitherPartyto thisAgreement, the Partiesshall havethe remediesof specific performance, mandamus, injunction and other equitableremedies. In theeventof a defaultpursuantto Section8.l(ii) or 8.l(iv), City shallhave the additionalremedy, in its soleandunfettereddiscretion, of withholding issuanceof grading, building or otherpermitsand/or the inspectionof previouslyissuedpermits. NeitherPartyshall havethe remedyof monetarydamagesagainstthe other; provided, however, that the awardof costsof litigation andattorneys’ feesshall not constitutemonetarydamages. For avoidanceof doubt, undernocircumstancesshallCity’sremediesincludeanyrightto requireOwnerto develop, construct, commence, or completeall or any portion of the Projectvia specific performance, injunctiverelief, or otherwise.

8.5 Remediesfor Breach. Exceptasotherwisesetforth herein, all remediesat law or in equity which areconsistentwith the provisionsof this Agreementare availableto City and Ownerto pursuein the eventthereis a breachprovided, however, neitherPartyshall havethe remedy of monetarydamagesagainstthe other exceptfor an award of litigation costs and attorneys’ feesasprovidedfor by this Agreement.

ARTICLE 9

MODIFICATION OR SUSPENSION

9.1 Modification to Agreementby Mutual Consent. Exceptasspecificallyprovided for herein, thisAgreementmaybemodified, from timeto time, bythemutualconsentof theParties only in the samemannerasits adoptionby an ordinanceassetforth in California Government Codesections65867, 65867.5 and65868. Theterm, “Agreement” asusedherein, will includeany suchmodificationproperlyapprovedandexecuted.

9.2 Minor Modifications. ThePartiesto thisAgreementcontemplatethattheremaybe periodicclarificationsandminor modificationsto this Agreement. Suchminor clarificationsor modificationswhenagreeduponby thePartiesheretoareanticipatedandshallnot constitutean amendmentto this Agreementor a modificationpursuantto this Article 9 but shallautomatically beincorporatedhereinuponexecutionin writing by theParties.

9.3 UnforeseenHealth or SafetyCircumstances. If, as a result of facts, events, or circumstancesCity finds that failure to suspendor modify this Agreementwould pose an immediatethreatto the healthor safetyof the City’s residentsor the City, the following shall occur:
a) Notification of UnforeseenCircumstances. Notify Owner of ( i) City’s determination; and (ii) thereasonsfor City’sdetermination, andall factsuponwhichsuchreasons arebased; and
2091/025068-0045
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b) Noticeof Hearing. Notify Ownerin writing at leastfourteen (14) daysprior to the date, of the date, time andplaceof the hearingandforward to Ownera minimum of ten 10) daysprior to the hearingsdescribedin paragraph9.3(c) below, all documentsrelatedto suchdeterminationandreasonstherefor; and
c) Hearing. Hold ahearingonthedetermination, atwhichhearingOwnerwill have theright to addresstheCity Council. At theconclusionof saidhearing, City maytakeactionto suspendor terminatethis Agreementasprovidedherein
ARTICLE 10

CHANGE IN STATEOR FEDERALLAW OR REGULATIONS

10.1 Stateor FederalLaw or Regulation. If anystateor federallaw orregulationenacted during theTermof this Agreement, or theactionor inactionof anyotheraffectedgovernmental jurisdiction, precludescompliancewith one or more provisionsof this Agreement, or requires changesin plans, maps, or permits approved by City, the Parties will act pursuant to paragraphs10.l(a) and10.l(b), below.
a) Notice; Meeting. The Party first becomingawareof suchenactmentor actionor inactionwill providetheotherParty(ies) with writtennoticeof suchstateor federallaw or regulationandprovidea copyof suchlaw or regulationanda statementregardingits conflict with theprovisionsof this Agreement. ThePartieswill promptlymeetandconferin a goodfaith andreasonableattemptto modify or suspendthisAgreementto complywith suchfederalor state law or regulation.
b) Hearing. If anagreed-uponmodificationor suspensionwould not require anamendmentto this Agreement, no hearingshallbeheld. Otherwise, thematterof suchfederal or statelaw or regulationwill bescheduledfor hearingbeforetheCity Council. Fifteen (15) days’ written noticeof suchhearingshallbeprovidedto Owner, andtheCity Council, at suchhearing, will determineandissuefindings on the modificationor suspensionwhich is requiredby such federalor statelaw or regulation. Theowner, atthehearing, shallhavetheright to offer testimony andotherevidence. Any modificationor suspensionshallbetakenby theaffirmativevoteof not lessthana majority of the authorizedvoting membersof the City Council. If the Partiesfail to agreeafter said hearing, the matter may be submittedto nonbindingmediation pursuantto subsection13.19, prior to the filing of any legal action by any Party. Any suspensionor modificationmaybesubjectto judicial reviewin conformancewith this Agreement.

ARTICLE 11

ASSIGNMENT, TRANSFERAND NOTICE

11.1 Assignmentof Interests, RightsandObligations. Ownermay transferall or any portionof its interestin, andrightsandobligationsunder, this Agreementto anypersonacquiring aninterestor estatein all or anyportionof theProperty (anysuchportion, a “TransferProperty”), including, without limitation, purchasersor ground lesseesof such Transfer Property (a Transferee”) only with thewrittenconsentof theCity, or asotherwisepermittedherein. Any such transferagreedto by the City must, asandto the extentsetforth below, relievethetransferring party (a “Transferor”) of anyandall rightsandobligationsunderthis Agreementinsofarasthey pertainto theTransferProperty. Providedthatall applicablepaymentsandapplicablerequirements andconditionsof this Agreementandthe Existing ProjectApprovalsandanyapplicableFuture ProjectApprovalshavebeenfully performedandsatisfiedin theCity’sdetermination, Ownershall havetheright to assign, transfer, or conveyall or anypartialinterestin all or anyportion of the Property to any entity or entities owned or under common control with Owner (“Permitted Transfer”) withouttheconsentof theCity. Ownershalltimelyprovideto theCity reasonablenotice anda copyof theTransferInstrumentthirty daysbeforeanyPermittedTransferto allow theCity to confirmthecommonownershipor controlof thetransfereewith theOwner. No sale, transferor assignmentshallrequiretheamendmentof this Agreement. Any transferby Ownerof all or any portionof its interestin, andrightsandobligationsunder, this Agreementto anyotherpersonor entity, otherthanaPermittedTransfer, shallrequiretheCity’s expresswritten consent.

11.2 Transfersto Third Personsin General; Release. In connectionwith anytransferby aTransferorof all or anyportionof theProperty, theTransferorandtheTransfereemayenterinto a written agreementregardingthe respectiverights and obligationsof the Transferorand the Transfereein andunderthis Agreement (a “TransferAgreement”). Any suchTransferAgreement may containprovisions (i) releasingthe Transferorfrom any rights and obligationsunderthis Agreementthatrelateto theTransferProperty, providedtheTransfereeexpresslyassumesall such rights andobligations, (ii) transferringto the Transfereea vestedright to improve andusethat portion of the Propertybeing transferredand any other rights or obligationsof the Transferor arising under this Agreement, and (iii) addressingany other matter deemednecessaryor appropriatein connectionwith the Transferof the TransferProperty. The TransferAgreement shall bein recordableform, in substantiallytheform attachedheretoasExhibit E. Any material changesto theattachedform will besubjectto thereviewandapprovalof theCity, which shall not be unreasonablywithheld or delayed. Providedthat all applicablepaymentsandapplicable requirementsandconditionsrequiredby this AgreementandtheExistingProjectApprovalsand anyapplicableFutureProjectApprovalshavebeenfully performedandsatisfiedby theOwnerin the City’s determination, uponrecordationof any TransferAgreementfor a PermittedTransfer, theTransferorshallbereleasedfrom anyprospectiveliability or obligationunderthis Agreement relatedto theTransferProperty, exceptasspecifiedtherein, andthereaftertheTransfereeshallbe deemedto be “Owner” underthis Agreementwith all rights andobligationsrelatedhereunder, solelywith respectto theTransferredProperty.

11.3 ReleaseProvisions. Exceptin thecaseof PermittedTransfersutilizing a Transfer Agreementin substantiallythe form of Exhibit E attachedhereto, a Transferorshall obtainthe City’s written consentto thoseprovisionsof anyTransferAgreementpurportingto releasesuch Transferorfrom anyobligationsarisingunderthis Agreement (the “ReleaseProvisions”).

11.4 City Consent. City will reviewandconsiderpromptlyandin goodfaith anyrequest by a Transferorfor City’s written consentto any transferand/or anyReleaseProvisions. City’s consentto any suchtransferand/or ReleaseProvisionsmay be withheld only if, in light of the proposedTransferee’s reputationand financial resources, suchTransfereewould not in City’s reasonablediscretionbeableto fully andtimely performtheobligationsproposedto beassumed by suchTransferee. In no eventwill City’s consentto anytransferand/or ReleaseProvisionsbe unreasonablywithheld.
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11.5 Non-AssumingTransferees. Exceptasotherwiserequiredby Ownerin Owner’s solediscretion, theburdens, obligationsanddutiesof OwnerunderthisAgreementterminatewith respectto, andneitheraTransferAgreementnorCity’sconsentis requiredin connectionwith any individual single-family residence (and its associatedlot) that has receiveda certificate of occupancyand beenconveyedto a third party. The transfereein such a transactionand its successors (“Non-Assuming Transferees”) are deemedto have no obligations under this Agreement. Nothing in this sectionexemptsany property transferredto a Non-Assuming Transfereefrom paymentof applicablefees and assessmentsor compliancewith applicable conditionsof approval.

ARTICLE 12

MISCELLANEOUSPROVISIONS

12.1 Relationshipof City andOwner. The contractualrelationshipbetweenCity and Ownerarisingoutof thisAgreementisnotof agency, partnership, orjoint venture. ThisAgreement doesnot createanythird- partybeneficiaryrights.

12.2 Notices. All notices, demands, andcorrespondencerequiredor permittedby this Agreementshall bein writing anddeliveredin person, or mailedby first-classor certifiedmail, postageprepaid, addressedasfollows:

If to City: Attention: City Manager
276FourthAvenue
ChulaVista, CA 91910
If to Owner: Attention: Jim Varsamis,
SeniorVice President
BrookfieldRetail
350N. OrleansStreet, Suite300
Chicago, IL 60654
[email protected]
and
Attention: LegalRealEstateGroup
BrookfieldProperties
350N. OrleansSt., Suite300
Chicago, IL 60654
with acopyto: Rutan & Tucker, LLP
Attn: PeterHowell
18575JamboreeRoad, 9th Floor
Irvine, CA 92612
City or Ownermaychangeits addressby giving noticein writing to theother. Thereafter, notices, demands, and correspondenceshall be addressedand transmittedto the new address.

Notice shall be deemedgiven upon personaldelivery, or, if mailed, two ( 2) businessdays following depositin theUnitedStatesmail.

12.3 Rulesof Construction. In this Agreement, the useof the singularincludesthe plural; themasculinegenderincludesthefeminine; “shall” is mandatory; “may” is permissive.

12.4 EntireAgreement, Waivers, andRecordedStatement. ThisAgreementconstitutes theentireunderstandingandagreementof City andOwnerwith respectto thematterssetforth in thisAgreement. ThisAgreementsupersedesall negotiationsor previousagreementsbetweenCity andOwnerrespectingthisAgreement. All waiversof theprovisionsof thisAgreementmustbein writing and signedby the appropriateauthoritiesof City and Owner. Upon the completionof performanceof this Agreement, or its revocation or termination, a statementevidencing completion, revocation, or terminationsignedby theCity Managershallberecordedin theOfficial Recordsof the City. Unlessotherwisespecifically stated, nothing hereinshall be construedto supersede, modify or amendotherexistingagreementsbetweentheParties.

12.5 Counterparts. This Agreementmay be executedin any numberof counterparts, eachof which shall bedeemedto theoriginal andall of which togethershall constituteoneand thesameinstrument.

12.6 Incorporationof Recitals. Therecitalssetforth in thisAgreementareincorporated hereinto this Agreement.

12.7 Captions. Thecaptionsof this Agreementarefor convenienceandreferenceonly and shall not define, explain, modify, construe, limit, amplify, or aid in the interpretation, construction, or meaningof anyof theprovisionsof this Agreement.

12.8 Consent. Wheretheconsentor approvalof City or Owneris requiredor necessary underthis Agreement, the consentor approvalshall not be unreasonablywithheld, delayed, or conditioned.

12.9 Covenantof Cooperation. City andOwnershallcooperateanddealwith eachother in goodfaith andassisteachotherin theperformanceof theprovisionsof this Agreement.

12.10 Recording. The City Clerk shall causea copy of this Agreementto be recorded with theOffice of theCountyRecorderof theCountyof SanDiego, within ten (10) daysfollowing theEffectiveDate.

12.11 Delay, Extensionof Time for Performance (ForceMajeure). In additionto any specific provision of this Agreement, performanceby either City or Owner of its obligations hereundershallbeexcusedduringanyperiodof delaycausedat anytime by reasonof anyevent beyondthe control of City or Ownerwhich preventsor delaysandimpactsCity’s or Owner’s ability to performobligationsunderthis Agreement, including, but not limited to thefollowing:
actsof God, enactmentof newconflictingfederal, stateorlocallawsorregulations (suchas: listing of a speciesas threatenedor endangered), judicial actions (suchas the issuanceof restraining ordersandinjunctions), or riots, strikes, pandemics, declaredhealthemergencies, or damageto work in processby reasonof fire, floods, earthquake, or othersuchcasualties. In addition, any delayin Owner’s performancehereinmaybeexcusedif suchdelayis causedby City’s failure to processanyrequiredplans, documentsor approvals, provided, however, City’sdelayis notcaused by Owner’s failure to submitsuchplansor documentsin a timely manneror is dueto Owner’s changesor amendmentsto saiddocuments. If City or Ownerseeksexcusefrom performance, it 2091/025068-0045
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shall provide written notice of such delay to the other Party within thirty ( 30) days of the commencementof suchdelay. If thedelayor defaultis beyondthecontrolof City or Owner, and is excused, an extensionof time for suchcausewill be grantedin writing for the periodof the enforceddelay, or longerasmaybemutuallyagreedupon.

12.12 Covenantof GoodFaithandFairDealings. No Partyshalldoanythingwhichshall havetheeffectof harmingor injuring theright of theotherPartiesto receivethebenefitsof this Agreement; eachParty shall refrain from doing anythingwhich would renderits performance under this Agreementimpossible; and eachParty shall do everythingwhich this Agreement contemplatesthat suchPartyshall do in orderto accomplishtheobjectivesandpurposesof this Agreement.

12.13 Time of Essence. Time is of the essencein theperformanceof the provisionsof this Agreementasto which timeis anelement.

12.14 Cancellationof Agreement. This Agreementmay be canceledby the mutual consentof City andOwneronly in thesamemannerasits adoption, by anordinanceassetforth in CaliforniaGovernmentCodesection65868andshallbein a form suitablefor recordingin the Official Recordsof theCounty. Theterm “Agreement” shallincludeanysuchamendmentproperly approvedandexecuted.

12.15 EstoppelCertificate. Within thirty (30) calendardaysfollowing a written request by anyof theParties, theotherPartiesto thisAgreementshallexecuteanddeliverto therequesting Partyastatementcertifying that (i) this Agreementis unmodifiedandin full forceandeffect, or if therehavebeenmodificationshereto, that this Agreementis in full forceandeffectasmodified and statingthe dateandnatureof suchmodifications; (ii) thereareno known currentuncured defaultsunderthisAgreement, or specifyingthedatesandnatureof anysuchdefault; and (iii) any otherreasonableinformationrequested. Thefailure to deliversucha statementwithin suchtime shall constitutea conclusivepresumptionagainstthePartywhich fails to deliversuchstatement thatthis Agreementis in full forceandeffectwithout modification, exceptasmayberepresented by therequestingParty, andthattherearenouncureddefaultsin theperformanceof therequesting Party, exceptas may be representedby the requestingParty. The EstoppelCertificatemay be issuedby theDirectorof DevelopmentServices, or theirdesignee.

12.16 Institution of Legal Proceeding. In additionto any otherrights or remedies, any Partymayinstitutelegalactionto cure, correct, or remedyanydefault, to enforceanycovenants or agreementsherein, or to enjoinanythreatenedor attemptedviolation thereof; or to obtainany remediesconsistentwith thepurposeof this Agreement. Suchlegalactionsmustbeinstitutedin theSuperiorCourtof theCountyof SanDiego, Stateof California.

12.17 Attorneys’ FeesandCosts. If anyPartycommenceslitigation or otherproceedings including, without limitation, arbitration) for the interpretation, reformation, enforcement, or rescissionof this Agreement, theprevailingParty, asdeterminedby thecourt, will beentitledto its reasonableattorneys’ feesandcosts.

12.18 Hold Harmless. In addition to any defense, indemnity, and hold harmless obligationsof Owner, whetherat contractor at law, Owneragreesto andshall fully andtimely indemnify, reimburse, andhold harmlessCity, its officers, agents, employeesandrepresentatives from liability for damage, cost, expense, or claimsfor damagefor personalinjury, includingdeath, andanyform of claimsfor propertydamagewhichmayarisefrom thedirector indirectoperations of Owneror thoseof its contractors, subcontractors, agents, employeesor otherpersonsactingon Owner’s behalf, on theProject. Owneralsoagreesto andshalldefend (with counselapprovedby theCity in writing) City andits officers, agents, employeesandrepresentativesfrom actionsfor damage, costs, expense, or liability causedor allegedto havebeencausedby reasonof Owner’s activities on or inaction relating to the Project. Owner agreesto fully and timely indemnify, reimburse, hold harmless, pay all costsand provide a defensefor City in any administrative proceeding, or any legal action filed in a court of competentjurisdiction by a third Party challengingthevalidity of this Agreement. Theprovisionsof thisparagraph12.18shallnot apply to theextentsuchdamage, liability or claimis causedby thesolenegligenceor willful misconduct of City, its officers, agents, employeesor representatives.

12.19 Non-bindingMediation. If thisAgreementrequiresmediationin orderto resolvea disagreementbetweentheParties, suchmediationshallcomplywith thefollowing provisions:
a) Meet andConfer. ThePartiesshall meetandconferin goodfaith to attemptto resolvetheir disagreement. If thePartiesarenot ableto resolvetheir disagreementwithin thirty 30) calendardays after their first meetingon the subject, the mattershall be submittedfor non-bindingmediationin accordancewith thetermsandconditionssetforth below. b) Non-bindingMediation. In theeventthatthePartiesareunableto resolvetheir disagreementby meetingandconferringamongthemselvesasprovidedabove, thePartiesshall meetto selectamediatorwhowill attemptto resolvethedisagreement. Unlessotherwiseagreed by the Parties, the mediatorshall haveno affiliation with eitherof the Partiesandpreferably haveexperiencein municipallaw or landuse. In theeventthatthePartiesareunableto agree on a mediatorwithin ten (10) businessdaysaftertheexpirationof themeetandconferperiod, thePartiesshallpetitiona Judgeof theSuperiorCourtof theCountyof SanDiegoto appointa mediatorwhopossessestheabove-describedqualifications.
c) Mediation. Themediationshalloccurattimesandlocationsagreeduponby the Parties. ThePartiesshallsubmitto themediatortheirrespectiverelevantdocumentsor evidence supportingtheirpositionthateachmaychooseto provide. NeitherParty, northemediator, shall haveany discoverypowersin the proceeding. The mediatorshall meetwith the Partiesand attemptto resolvetheir disagreementby facilitating discussionsbetweenthem. The mediator shall not takea positionon thedisputeunlessrequestedto do so by bothParties. In the event thatmediationprocessdoesnotresolvethedisagreementwithin twenty (20) businessdaysafter first meeting with the mediator, unlessextendedby mutual agreementof the Parties, the mediationprocessshallterminate. All discussionsatthemediationshallbekeptconfidential, as may be allowed by stateand federallaw, and shall not be discoverablein any subsequent proceedings. EachPartyshallbeartheir own costsin themediationandthePartiesshallshare equally in any and all costschargedby the mediator. In the eventthat a resolutionof the disagreementatissueis notreached, eachPartyreservestheright to pursueanyandall remedies availableatlaw or in equitywith respectthereto.
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Datedthis __ dayof __________, 2024

CITY OFCHULA VISTA
By:

GGP-OTAY RANCH, L.P.,

A DELAWARE LIMITED PARTNERSHIP
By: GGP-OtayRanchL.L.C.,
aDelawarelimited liability company
andgeneralpartner
By: GGP/HomartII L.L.C.,
aDelawarelimited liability company
andits solemember
By:

General Growth Properties (GGP)
OtayRanchL.P.

ATTEST:

APPROVEDAS TO FORM:

2091/025068-0045
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EXHIBIT A
1-

EXHIBIT A

LEGAL DESCRIPTION OF PROPERTY
LOT 4 TOGETHERWITH PORTIONSOF LOT 1 OF CHULA VISTA TRACT NO. 05-02,

OTAY RANCH FREEWAYCOMMERCIAL SECTIONALPLANNING AREA, IN THE CITY

OFCHULA VISTA, COUNTY OFSAN DIEGO, STATEOFCALIFORNIA, ACCORDINGTO MAP THEREOFNO. 15037, FILED IN THE OFFICEOFTHE COUNTYRECORDEROFSAN DIEGO COUNTY JUNE 30, 2005, AND AS CORRECTED BY A CERTIFICATE OF CORRECTIONRECORDEDJANUARY 3, 2008AS INSTRUMENTNO. 2008-0003099, AND

FURTHER CORRECTEDBY A CERTIFICATE OF CORRECTIONRECORDEDAUGUST 10, 2009 AS INSTRUMENT NO. 2009-0446488, BOTH OF OFFICIAL RECORDS, BEING MORE PARTICULARLY DESCRIBEDAS FOLLOWS:

PARCEL A
BEGINNING AT THE NORTHWESTCORNEROF SAID LOT 1; THENCE ALONG THE NORTHERLYLINE THEREOFNORTH71°57’30” EAST (RECORDN71°57’21”E PERSAID MAP), 176.03 FEETTO THE SOUTHERLYLINE OF PARCEL40015-1 GRANTED TO SAN

DIEGOASSOCIATIONOFGOVERNMENTSPERGRANT DEEDRECORDEDDECEMBER 29, 2016 AS DOCUMENT NO. 2016-0714265, OF OFFICIAL RECORDS, BEING THE BEGINNING OF A NON-TANGENT 512.50 FOOT RADIUS CURVE CONCAVE NORTHERLY, A RADIAL LINE TO SAID POINT BEARS SOUTH 00°25’59” WEST;

THENCE LEAVING SAID NORTHERLY LINE ALONG SAID SOUTHERLY LINE

EASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 18°28’26” A DISTANCE OF 165.25 FEET; THENCENORTH 71°57’33” EAST, 456.08 FEET TO THE WESTERLYLINE OF SAID LOT 4, SAID POINT BEING THE BEGINNING OF A NON-TANGENT 1123.00FOOTRADIUS CURVECONCAVEEASTERLY, A RADIAL LINE TO SAID POINT BEARSSOUTH83°07’32” WEST; THENCENORTHERLY ALONG SAID

WESTERLYLINE AND THE ARC OF SAID CURVE THROUGHA CENTRAL ANGLE OF 00°04’26” A DISTANCE OF 1.45 FEETTO SAID NORTHERLY LINE; THENCELEAVING SAID PARCEL40015-1 ALONG THENORTHERLYLINESOFSAID LOTS1AND 4NORTH 71°57’30” EAST, 54.59 FEET; THENCE LEAVING SAID NORTHERLY LINE SOUTH 18°02’30” EAST, 53.83 FEET; THENCE SOUTH 17°31’53” EAST, 59.68 FEET TO THE BEGINNING OF A 138.00 FOOT RADIUS CURVE CONCAVE SOUTHWESTERLY;

THENCESOUTHEASTERLYALONG THEARC OFSAID CURVETHROUGHA CENTRAL ANGLE OF 04°15’24” A DISTANCE OF 10.25 FEET TO THE BEGINNING OF A 1054.00

FOOT RADIUS REVERSECURVE CONAVE NORTHEASTERLY, A RADIAL LINE TO SAID POINT BEARSSOUTH76°43’31” WEST; THENCESOUTHEASTERLYALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 05°51’47” A DISTANCE OF 107.86 FEET; THENCE SOUTH 19°08’17” EAST, 61.22 FEET TO THE BEGINNING OF A 172.00 FOOT RADIUS CURVE CONCAVE NORTHEASTERLY; THENCE

SOUTHEASTERLYALONG THE ARC OFSAID CURVE THROUGHA CENTRAL ANGLE OF09°56’23” A DISTANCE OF29.84FEET; THENCESOUTH29°04’40” EAST, 38.74FEET TOTHE BEGINNINGOFA 436.00FOOTRADIUS CURVECONCAVESOUTHWESTERLY;

THENCESOUTHEASTERLYALONG THEARC OFSAID CURVETHROUGHA CENTRAL ANGLE OF 04°17’15” A DISTANCE OF 32.63 FEET; THENCE SOUTH 24°47’25” EAST,

27.79 FEET TO THE BEGINNING OF A 352.00 FOOT RADIUS CURVE CONCAVE SOUTHWESTERLY; THENCE SOUTHEASTERLYALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 10°53’57” A DISTANCE OF 66.96 FEET TO THE BEGINNING OF A 375.00 FOOT RADIUS COMPOUND CURVE CONCAVE SOUTHWESTERLY; THENCE SOUTHEASTERLYALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 06°11’07” A DISTANCE OF 40.48 FEET; THENCE SOUTH 07°42’21” EAST, 106.90 FEET; THENCE SOUTH 82°00’00” WEST, 268.88 FEET; THENCESOUTH07°50’53” EAST, 0.96FEETTO THE BEGINNING OFA NON-TANGENT

20.00 FOOT RADIUS CURVE CONCAVE SOUTHEASTERLY, A RADIAL LINE TO SAID POINTBEARSNORTH07°50’53” WEST; THENCESOUTHWESTERLYALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 83°02’49” A DISTANCE OF 28.99 FEET; THENCESOUTH82°00’10” WEST, 13.11 FEETTO A POINT IN THE SOUTHERLY LINE OF SAID LOT 4; THENCE ALONG SAID SOUTHERLY LINE SOUTH 07°59’50” EAST, 15.58 FEET; THENCE SOUTH 82°00’10” WEST, 11.00 FEET; THENCE LEAVING SAID SOUTHERLY LINE SOUTH 08°00’00” EAST, 164.92 FEET; THENCE SOUTH 82°00’00” WEST, 12.50 FEET; THENCE NORTH 72°31’00” WEST, 28.00 FEET; THENCE SOUTH 81°37’00” WEST, 510.42 FEET; THENCE NORTH 08°00’00” WEST, 92.41 FEET; THENCESOUTH82°00’00” WEST, 10.37 FEET; THENCENORTH 08°00’00” WEST, 38.81 FEET; THENCESOUTH82°00’00” WEST, 40.54FEET; THENCENORTH 74°57’00” WEST,

14.00 FEET TO THE BEGINNING OF A 61.50 FOOT RADIUS CURVE CONCAVE NORTHEASTERLY; THENCE NORTHWESTERLYALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 31°34’57” A DISTANCE OF 33.90 FEET; THENCE SOUTH 82°00’00” WEST, 72.36 FEET TO A POINT IN THE WESTERLY LINE OF SAID LOT 1; THENCE ALONG SAID WESTERLYLINE NORTH 02°42’33” WEST, 16.85 FEET; THENCE NORTH 00°45’27” WEST, 86.28 FEET; THENCENORTH 01°42’40” WEST, 25.65 FEET; THENCENORTH00°44’18” WEST, 168.03FEET; THENCENORTH01°53’44” EAST, 149.93 FEET; THENCENORTH 02°31’58” EAST, 31.90 FEET; THENCENORTH 02°45’18” EAST, 60.52 FEETTO THE POINT OF BEGINNING.

EXCEPTING THEREFROMTHE HEREINABOVE DESCRIBEDPARCEL OF LAND ANY PORTIONLYING WITH LOT 5 OFSAID MAP NO. 15037.

THE HEREINABOVE DESCRIBEDPARCELOF LAND CONTAINS 14.591ACRES, MORE OR LESS.

PARCEL B
BEGINNING AT AN ANGLE POINT IN THE SOUTHWESTERLYLINE OF SAID LOT 1,

SAID POINT BEING THE WESTERLY TERMINUS OF THAT CERTAIN COURSE AS SHOWN ON SAID MAP BEARING NORTH 82°00’00” EAST, 216.95 FEET; THENCE ALONG SAID SOUTHWESTERLYLINE NORTH 81°59’56” EAST, 76.88 FEET; THENCE LEAVING SAID SOUTHWESTERLYLINE NORTH 07°59’50” WEST, 7.10 FEET TO THE BEGINNING OF A 2.00 FOOTRADIUS CURVE CONCAVESOUTHWESTERLY; THENCE

NORTHWESTERLYALONG THE ARC OF SAID CUVE THROUGHA CENTRAL ANGLE OF90°00’00” A DISTANCE OF3.14FEET; THENCESOUTH82°00’10” WEST, 17.00FEET; THENCENORTH07°59’50” WEST, 243.00 FEET; THENCENORTH 82°00’10” EAST, 17.00 FEET TO THE BEGINNING OF A 2.00 FOOT RADIUS CURVE CONCAVE 2091/025068-0045
21015114.2 a09/18/24

EXHIBIT A
3-
NORTHWESTERLY; THENCE NORTHEASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 90°00’00” A DISTANCE OF 3.14 FEET; THENCE NORTH 07°59’50” WEST, 7.10 FEET; THENCESOUTH82°00’10” WEST, 167.84 FEETTO THE WESTERLYLINE OFSAID LOT 1; THENCEALONG SAID WESTERLYLINE SOUTH 11°45’18” EAST, 45.01 FEET; THENCE SOUTH 14°13’28” EAST, 39.16 FEET; THENCE SOUTH 15°13’56” EAST, 31.49 FEET; THENCE SOUTH 16°55’17” EAST, 30.06 FEET; THENCE SOUTH 18°01’56” EAST, 45.42 FEET; THENCE SOUTH 19°54’00” EAST, 37.19 FEET; THENCESOUTH 21°59’19” EAST, 62.50 FEET; THENCESOUTH 32°17’52” EAST,

39.23 FEET TO THE SOUTHWESTCORNEROF SAID LOT 1; THENCE LEAVING SAID WESTERLYLINE ALONG SAID SOUTHWESTERLYLINE NORTH61°27’47” EAST, 47.93 FEET; THENCENORTH 28°32’13” WEST, 47.28 FEETTO THE POINT OF BEGINNING.

THE HEREINABOVE DESCRIBEDPARCEL OF LAND CONTAINS 0.870ACRES, MORE OR LESS.

PARCEL C

COMMENCING AT AN ANGLE POINT IN THE SOUTHWESTERLYLINE OF SAID LOT 1, SAID POINT BEING THE WESTERLY TERMINUS OF THAT CERTAIN COURSEAS SHOWN ON SAID MAP BEARING NORTH 82°00’00” EAST, 216.95 FEET; THENCE ALONG SAID SOUTHWESTERLYLINE NORTH 81°59’56” EAST, 106.88 FEET TO THE TRUE POINT OF BEGINNING; THENCE LEAVING SAID SOUTHWESTERLY LINE NORTH 07°59’50” WEST, 39.69 FEET; THENCE NORTH 82°00’10” EAST, 6.00 FEET; THENCE NORTH 07°59’50” WEST, 5.00 FEET; THENCE SOUTH 82°00’10” WEST, 6.00 FEET; THENCE NORTH 07°59’50” WEST, 88.60 FEET TO A POINT IN SAID SOUTHWESTERLY LINE; THENCE ALONG SAID SOUTHWESTERLY LINE NORTH 62°29’09” EAST, 98.43 FEET; THENCE NORTH 81°59’56” EAST, 17.28 FEET; THENCE SOUTH08°00’04” EAST, 166.17FEET; THENCESOUTH81°59’56” WEST, 110.07FEETTO THE TRUE POINT OF BEGINNING.

THE HEREINABOVE DESCRIBEDPARCEL OF LAND CONTAINS 0.384ACRES, MORE OR LESS.

PARCEL D
COMMENCING AT AN ANGLE POINTIN THE SOUTHERLYLINE OFSAID LOT 1, SAID

POINT BEING THE SOUTHERLYTERMINUS OF THAT CERTAIN COURSEAS SHOWN ON SAID MAP BEARING NORTH 08°00’00” WEST, 571.65 FEET; THENCEALONG SAID SOUTHERLY LINE NORTH 08°00’04” WEST, 571.65 FEET; THENCE LEAVING SAID SOUTHERLY LINE NORTH 14°30’54” WEST, 147.30 FEET TO THE TRUE POINT OF BEGINNING; THENCE SOUTH 82°00’10” WEST, 167.15 FEET; THENCE SOUTH 04°29’41” WEST, 8.65 FEET; THENCE SOUTH 82°00’10” WEST, 7.05 FEET; THENCE SOUTH 07°59’50” EAST, 58.58 FEET; THENCE SOUTH 82°00’10” WEST, 82.67 FEET; THENCE NORTH 07°59’50” WEST, 18.15 FEET TO THE BEGINNING OF A NON- TANGENT 21.00 FOOT RADIUS CURVE CONCAVE WESTERLY, A RADIAL LINE TO SAID POINT BEARSSOUTH73°01’11” EAST; THENCENORTHERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 52°31’30” A DISTANCE OF 19.25 FEET; THENCENORTH07°59’50” WEST, 15.94FEET; THENCENORTH22°17’15” WEST,

4.49 FEET; THENCE SOUTH 82°00’10” WEST, 152.22 FEET; THENCE SOUTH 66°44’50” WEST, 11.40 FEET; THENCE SOUTH 82°00’10” WEST, 6.00 FEET; THENCE NORTH 07°59’50” WEST, 53.17 FEET; THENCE NORTH 82°00’10” EAST, 164.19 FEET TO THE BEGINNING OFA NON-TANGENT 86.50FOOTRADIUS CURVECONCAVEEASTERLY, A RADIAL LINE TO SAID POINT BEARS SOUTH 81°16’06” WEST; THENCE

NORTHERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 22°31’07” A DISTANCE OF 34.00 FEET; THENCE NORTH 82°00’10” EAST, 7.08 FEET; THENCENORTH 07°59’50” WEST, 42.66 FEET; THENCENORTH 82°00’10” EAST; 75.06 FEET; THENCESOUTH07°59’50” EAST, 42.62 FEET; THENCENORTH 82°00’10” EAST,

7.62FEET; THENCESOUTH07°59’50” EAST, 3.06FEETTO THE BEGINNING OFA NON- TANGENT 88.00FOOTRADIUS CURVECONCAVESOUTHWESTERLY, A RADIAL LINE TO SAID POINT BEARS NORTH 63°15’46” EAST; THENCE SOUTHEASTERLYALONG THE ARC OF SAID CURVE THROUGHA CENTRAL ANGLE OF 18°41’11” A DISTANCE OF 28.70 FEET; THENCE NORTH 82°00’10” EAST, 164.72 FEET; THENCE SOUTH 07°59’50” EAST, 42.16 FEETTO THE TRUE POINT OF BEGINNING.

THE HEREINABOVE DESCRIBEDPARCEL OF LAND CONTAINS 0.719ACRES, MORE OR LESS.

JIMMY J. ELMORE P.L.S. 8483
HUNSAKER & ASSOCIATESSAN DIEGO, INC.
2091/025068-0045
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EXHIBIT B
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EXHIBIT B

PROPERTY MAP & SUMMARY OF MINIMUM DENSITY BY LOT

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EXHIBIT C
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EXHIBIT C
TENTATIVE MAP/CVT 22-0002FOR: OTAY RANCH TOWN CENTER FC-1

CITY OF CHULA VISTA, CALIFORNIA
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EXHIBIT C
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TM Stats table. xls Updated: 8/23/2024
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EXHIBIT D
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EXHIBIT D

RELEASE FORM

RECORDINGREQUESTEDBY
AND WHEN RECORDEDMAIL TO:

City Clerk

CITY OFCHULA VISTA
276FourthAvenue
ChulaVista, CA 91910
SpaceAboveFor Recorder’s Use)

RELEASEFROMDEVELOPMENTAGREEMENT
This ReleaseAgreement (“Release”) is madeand enteredinto as of this ____ day of EffectiveDate”), by andbetweentheCITY OFCHULA VISTA, achartered California municipal corporation (“City”) on the one hand, and __________________, a Owner”) on the other. Collectively, City and Owner may be referredto as Parties” andindividually, eachasa “Party”.

RECITALS
A. On _____________, 2024 the City approveda mixed-use developmentproject intendedtoprovide, overoneormorephases, upto 840residentialdwellingunits, whilepreserving existingretail space, including the demolitionof existingretail spaceandrebuildingof 37,200 squarefeetof retail (the “Project”) on a 16.59 acresite (the “Property”). TheCity alsoapproved andenteredinto thatcertainDevelopmentAgreementNo. _____ (the “DevelopmentAgreement”), datedasof [_____________], 202[_] andwasrecordedin theOfficial Recordsof theCountyof SanDiego (“Official Records”) on [_________] asDocumentNo. [______].

B. Pursuantto Section5.3 of the DevelopmentAgreement, uponwritten requestof Owner and provided that all paymentsand the requirementsand conditionsrequiredby the DevelopmentAgreement have been performed, City may execute and deliver to Owner appropriaterelease(s) of obligationsimposedby the DevelopmentAgreement, as necessaryto effectthereleaseof a portiontheProperty.

C. OwnerhasrequestedthatCity releaseaportionof theProperty, asmoreparticularly describedin Exhibit A attachedhereto (the “ReleasedProperty”), andCity hasdeterminedthatthe requirementsfor sucha releasehavebeensatisfied.

AGREEMENT
NOW, THEREFORE, for goodandvaluableconsideration, thereceiptandsufficiencyof which areherebyacknowledged, thepartiesherebyagreeasfollows:

1. Release. Pursuantto Section5.3 of theDevelopmentAgreement, theCity fully and unconditionallyreleasesandforeverdischargestheReleasedPropertyfrom all obligationsunder theDevelopmentAgreement.

2. No Effect on OtherAgreements. This Releaseonly affectstheReleasedProperty, andshallnotbeconstruedto affectanyobligationsof theCity or therespectivedevelopers/owners of anyotherportionof theProperty.

3. SuccessorsandAssigns. ThisReleaseshallbebindinguponandinuretothebenefit of thepartiesheretoandtheir successorsandassigns.

4. Counterparts; Governing Law. This Releasemay be executed in several counterparts, eachof which counterpartsshallbedeemedanoriginal instrumentandall of which togethershall constitutea singleagreement. This Releaseshall be governedby the laws of the Stateof California.

END OFTEXT; SIGNATURESFOLLOW IMMEDIATELY ON NEXT PAGE]
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EXHIBIT D
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IN WITNESSWHEREOF, thepartieshaveexecutedthisReleaseasof theEffectiveDate.

ATTEST:

By:

City Clerk
CITY:

CITY OFCHULA VISTA,
aMunicipalCorporation
By:

APPROVEDAS TO FORM:

By:

City Attorney
City of ChulaVista
OWNER:

NAME]
By:

Its:

A Notary Public or other officer completingthis certificate verifies only the identity of the individual who signedthedocumentto which this certificateis attached, andnot thetruthfulness, accuracy, or validity of thatdocument.

Stateof California )
Countyof ______________________ )
On _________________________, beforeme, ,
insertnameandtitle of theofficer)
NotaryPublic, personallyappeared ,
who provedto meon thebasisof satisfactoryevidenceto betheperson(s) whosename(s) is/are subscribedto thewithin instrumentandacknowledgedto methathe/she/theyexecutedthesame in his/her/theirauthorizedcapacity(ies), andthatby his/her/theirsignature(s) ontheinstrumentthe person(s), or theentityuponbehalfof which theperson(s) acted, executedtheinstrument.

I certify underPENALTY OFPERJURYunderthelawsof theStateof Californiathatthe foregoingparagraphis trueandcorrect.

WITNESSmy handandofficial seal.

Signature ( Seal)
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A Notary Public or other officer completingthis certificate verifies only the identity of the individual who signedthedocumentto which this certificateis attached, andnot thetruthfulness, accuracy, or validity of thatdocument.

Stateof California )
Countyof ______________________ )
On _________________________, beforeme, ,
insertnameandtitle of theofficer)
NotaryPublic, personallyappeared ,
who provedto meon thebasisof satisfactoryevidenceto betheperson(s) whosename(s) is/are subscribedto thewithin instrumentandacknowledgedto methathe/she/theyexecutedthesame in his/her/theirauthorizedcapacity(ies), andthatby his/her/theirsignature(s) ontheinstrumentthe person(s), or theentityuponbehalfof which theperson(s) acted, executedtheinstrument.

I certify underPENALTY OFPERJURYunderthelawsof theStateof Californiathatthe foregoingparagraphis trueandcorrect.

WITNESSmy handandofficial seal.

Signature ( Seal)
A Notary Public or other officer completingthis certificate verifies only the identity of the individual who signedthedocumentto which this certificateis attached, andnot thetruthfulness, accuracy, or validity of thatdocument.

Stateof California )
Countyof ______________________ )
On _________________________, beforeme, ,
insertnameandtitle of theofficer)
NotaryPublic, personallyappeared ,
who provedto meon thebasisof satisfactoryevidenceto betheperson(s) whosename(s) is/are subscribedto thewithin instrumentandacknowledgedto methathe/she/theyexecutedthesame in his/her/theirauthorizedcapacity(ies), andthatby his/her/theirsignature(s) ontheinstrumentthe person(s), or theentityuponbehalfof which theperson(s) acted, executedtheinstrument.

I certify underPENALTY OFPERJURYunderthelawsof theStateof Californiathatthe foregoingparagraphis trueandcorrect.

WITNESSmy handandofficial seal.

Signature ( Seal)
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A Notary Public or other officer completingthis certificate verifies only the identity of the individual who signedthedocumentto which this certificateis attached, andnot thetruthfulness, accuracy, or validity of thatdocument.

Stateof California )
Countyof ______________________ )
On _________________________, beforeme, ,
insertnameandtitle of theofficer)
NotaryPublic, personallyappeared ,
who provedto meon thebasisof satisfactoryevidenceto betheperson(s) whosename(s) is/are subscribedto thewithin instrumentandacknowledgedto methathe/she/theyexecutedthesame in his/her/theirauthorizedcapacity(ies), andthatby his/her/theirsignature(s) ontheinstrumentthe person(s), or theentityuponbehalfof which theperson(s) acted, executedtheinstrument.

I certify underPENALTY OFPERJURYunderthelawsof theStateof Californiathatthe foregoingparagraphis trueandcorrect.

WITNESSmy handandofficial seal.

Signature ( Seal)

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EXHIBIT D
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EXHIBIT “A”

LEGAL DESCRIPTIONOFTHE RELEASEDPARCEL

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EXHIBIT E
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EXHIBIT E

TRANSFER AGREEMENT

RECORDINGREQUESTEDBY
AND WHEN RECORDEDMAIL TO:

City Clerk

CITY OFCHULA VISTA
276FourthAvenue
ChulaVista, CA 91910
SpaceAboveFor Recorder’s Use)

ASSIGNMENTAND ASSUMPTIONAGREEMENT

RELATIVE TO DEVELOPMENTAGREEMENT
Otay [Phase_______]]
THIS ASSIGNMENT AND ASSUMPTION AGREEMENT ( hereinafter, the Assignment”) is enteredinto asof this [___] dayof [_______________, 20___], by andbetween a [__________] (“ Assignor”) and [_____________], a [___________] Assignee”). AssignorandAssigneeeacharealsoreferredto hereinasa “Party” andcollectively asthe “Parties”.

RECITALS
A. Assignoris apartyto thatcertainDevelopmentAgreement (asthesamemayhave been any may be further amended, restated or otherwise modified, the “Development Agreement”) datedasof [_______________], 202[_] with respectto certainrealpropertyowned by Assignor, assuchpropertyis moreparticularlydescribedin theDevelopmentAgreement (the ProjectSite”). TheDevelopmentAgreementwasrecordedin theOfficial Recordsof theCounty of SanDiego (“Official Records”) on [_______________] asDocumentNo. [_________].

B. Assignor is “Owner” under the DevelopmentAgreementwith respectto the portion of the ProjectSite asmoreparticularlyidentified anddescribedon Exhibit A attached hereto (hereafterthe “TransferredProperty”).

C. Contemporaneouslyherewith, Assignorhastransferredto AssigneeAssignor’s right, title andinterestin andto theTransferredProperty.

D. Assignordesiresto assignandAssigneedesiresto assumeAssignor’s right, title, interest, burdensandobligationsundertheDevelopmentAgreementwith respectto andasrelated to theTransferredProperty, asmoreparticularlydescribedbelow.

ASSIGNMENTAND ASSUMPTION
NOW, THEREFORE, for goodandvaluableconsideration, thereceiptandsufficiencyof which areherebyacknowledged, AssignorandAssigneeherebyagreeasfollows:

1. Incorporationof Recitals. The foregoingrecitalsare true and correctand are incorporatedhereinby this reference.

2. DefinedTerms. Initially capitalizedtermsusedhereinandnot otherwisedefined shallhavethemeaningascribedto themin theDevelopmentAgreement.

3. Assignmentof DevelopmentAgreement. Subjectto thetermsandconditionsof this Assignment, Assignorherebyassignsto Assignee, effectiveasof Assignor’s conveyanceof theTransferredPropertyto Assignee (the “AssignmentEffectiveDate”), all of Assignor’s right, title, obligations, and interest under the DevelopmentAgreementand the Existing Project ApprovalsandanyapplicableFutureProjectApprovalswith respectto theTransferredProperty, including without limitation any community benefitsor feesthat are tied to the Transferred Propertyapplicableto theTransferredProperty[, all asmoreparticularlydescribedonExhibit B], collectively, the “AssignedRightsandObligations”). Assignorretainsall of Assignor’s rights, title, obligationsandinterestundertheAgreementotherthantheAssignedRightsandObligations relatingto theportionsof theProjectSiteotherthantheTransferredProperty.

4. Assumptionof DevelopmentAgreement. Assigneeherebyassumes, as of the AssignmentEffectiveDate, theAssignedRightsandObligationsandagreesto observeandfully performall of the dutiesandobligationsof Assignorunderthe DevelopmentAgreementwith respectto theAssignedRightsandObligationsandto besubjectto all of thetermsandconditions of theDevelopmentAgreementwith respectto theAssignedRightsandObligations, in eachcase to the extent arising on or after the AssignmentEffective Date. Assignor and Assignee acknowledgeandagreethat, from andaftertheAssignmentEffectiveDate, Assigneeshallbethe Owner” under the DevelopmentAgreementand the Existing Project Approvals and any applicableFutureProjectApprovalswith respectto the TransferredPropertyandthe Assigned Rights andObligations. With respectto the TransferredProperty, Assigneeshall indemnify, defendand hold harmlessAssignorfrom any and all liability arising from the Development Agreementfrom andaftertheAssignmentEffectiveDate.

5. BindingonSuccessors. All of thecovenants, termsandconditionssetforth herein shallbebindinguponandshallinureto thebenefitof thepartiesheretoandtheirrespectiveheirs, successorsandassigns.

6. Notices. Thenoticeaddressfor AssigneeunderSection [ ] of the Development Agreementshallbe:
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EXHIBIT E
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Attn: ___________
With copyto:

Attn: ___________

7. Counterparts. ThisAssignmentmaybeexecutedin asmanycounterpartsasmay bedeemednecessaryandconvenient, andby thedifferentpartiesheretoonseparatecounterparts, eachof which, whenso executed, shall be deemedan original, but all suchcounterpartsshall constituteoneandthesameinstrument.

8. GoverningLaw; Venue. This Assignmentandthe legal relationsof the parties heretoshallbegovernedby andconstruedandenforcedin accordancewith thelawsof theState of California, withoutregardto its principlesof conflictsof law. All rightsandobligationsof the Partiesunderthis Assignmentareto beperformedin theCity of ChulaVista, andtheCountyof SanDiegoshallbethevenuefor anylegalactionor proceedingthatmaybebrought, or ariseout of, in connectionwith or by reasonof this Assignment.

9. No Waiver. The waiver or failure to enforceany provisionof this Assignment shall not operateasa waiverof anyfuturebreachof anysuchprovisionor anyotherprovision hereof.

10. FurtherAssurances. EachPartyshallexecuteanddeliversuchothercertificates, agreementsand documentsand take such other actions as may be reasonablyrequired to consummateor implementthetransactionscontemplatedby this Assignmentprovidedthesame doesnot increasesuchParty’s obligationsandliabilities or reducesuchParty’s rightsunderthis Assignmentand/or theDevelopmentAgreementotherthanto a deminimis extent.

11. Severability. If anyterm, provision, covenantor conditionof this Assignmentis held by a court of competentjurisdiction to be invalid, void or unenforceable, the remaining provisionsof this Assignmentshall continuein full force andeffect, exceptto the extentthat enforcementof the remainingprovisionsof this Assignmentwould be unreasonableor grossly inequitableunder all the circumstancesor would frustratethe fundamentalpurposeof this Assignmentor theDevelopmentAgreement.

12. Interpretation. The Partiesacknowledgethat this Assignmentis the productof negotiationandcompromiseonthepartof bothParties, andthePartiesagreethatsincebothhave participatedin the negotiationand drafting of this Assignment, this Assignmentshall not be construedasif preparedby oneof theParties, butratheraccordingto its fair meaningasawhole, asif bothPartieshadpreparedit.

13. Amendments. Any amendmentsor modificationsto this Assignmentmustbein writing, signedby duly authorizedrepresentativesof eachof thePartieshereto, andrecordedin theOfficial Records.

14. Recordation. AssignorandAssigneeshall recordthis Assignmentagainst theTransferredPropertyin theOfficial Recordscontemporaneouslywith therecordation of theinstrumentconveyingtitle to theTransferredPropertyto Assigneeandprior to the lien of any security interest that will encumberthe TransferredProperty after the conveyance.

15. Authority. Eachpersonexecutingthis Assignmentrepresentsandwarrantsthat heor shehastheauthorityto bindhisor herrespectivePartyto theperformanceof its obligations hereunderand that all necessaryboard of directors’, shareholders’, partners’, members’, managers’, andotherapprovalshavebeenobtained.

END OFTEXT; SIGNATURESFOLLOW IMMEDIATELY ON NEXT PAGE]
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EXHIBIT E
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IN WITNESS WHEREOF, the parties hereto have executedthis Assignment and AssumptionAgreementasof thedayandyearfirst abovewritten.

ASSIGNOR:

By:

Name:

Title:

ASSIGNEE:

By:

Name:

Title:

A Notary Public or other officer completingthis certificate verifies only the identity of the individual who signedthedocumentto which this certificateis attached, andnot thetruthfulness, accuracy, or validity of thatdocument.

Stateof California )
Countyof ______________________ )
On _________________________, beforeme, ,
insertnameandtitle of theofficer)
NotaryPublic, personallyappeared ,
who provedto meon thebasisof satisfactoryevidenceto betheperson(s) whosename(s) is/are subscribedto thewithin instrumentandacknowledgedto methathe/she/theyexecutedthesame in his/her/theirauthorizedcapacity(ies), andthatby his/her/theirsignature(s) ontheinstrumentthe person(s), or theentityuponbehalfof which theperson(s) acted, executedtheinstrument.

I certify underPENALTY OFPERJURYunderthelawsof theStateof Californiathatthe foregoingparagraphis trueandcorrect.

WITNESSmy handandofficial seal.

Signature ( Seal)
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EXHIBIT E
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A Notary Public or other officer completingthis certificate verifies only the identity of the individual who signedthedocumentto which this certificateis attached, andnot thetruthfulness, accuracy, or validity of thatdocument.

Stateof California )
Countyof ______________________ )
On _________________________, beforeme, ,
insertnameandtitle of theofficer)
NotaryPublic, personallyappeared ,
who provedto meon thebasisof satisfactoryevidenceto betheperson(s) whosename(s) is/are subscribedto thewithin instrumentandacknowledgedto methathe/she/theyexecutedthesame in his/her/theirauthorizedcapacity(ies), andthatby his/her/theirsignature(s) ontheinstrumentthe person(s), or theentityuponbehalfof which theperson(s) acted, executedtheinstrument.

I certify underPENALTY OFPERJURYunderthelawsof theStateof Californiathatthe foregoingparagraphis trueandcorrect.

WITNESSmy handandofficial seal.

Signature ( Seal)

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EXHIBIT “A”
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EXHIBIT “A”

LEGAL DESCRIPTIONOFTHE TRANSFERREDPROPERTY

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